What Currency Is Used in Australia?

Australia uses the Australian Dollar (AUD). Learn how it works, where it’s accepted, and tips for managing your money while visiting or doing business.

What currency is used in Australia?

Whether you're heading to Sydney for a holiday, paying an Australian supplier, or managing international payments, understanding the local currency is essential. This guide is written for travellers, importers, expats, and global finance professionals. It explains what currency is used in Australia, how it works, and how to manage it effectively when travelling or trading with the country.

Australia’s official currency: the Australian Dollar (AUD)

The official currency of Australia is the Australian Dollar, abbreviated as AUD and commonly symbolised as $ or A$ to distinguish it from other dollar-based currencies like USD or CAD.

  • Currency name: Australian Dollar

  • Currency code: AUD

  • Symbol: $ or A$

  • Subunit: 1 dollar = 100 cents

  • Issued by: Reserve Bank of Australia (RBA)

The Australian dollar is also used in several nearby territories, including Christmas Island, Cocos (Keeling) Islands, Norfolk Island, and it is the de facto currency in Tuvalu, Nauru, and Kiribati.

Coins and banknotes in circulation

  • Coins: 5c, 10c, 20c, 50c, $1, and $2

  • Banknotes: $5, $10, $20, $50, and $100

Australia was the first country to introduce polymer banknotes, which are highly secure and durable. Banknotes feature famous Australian figures, Indigenous culture, and native wildlife.

Where the Australian dollar is used

The AUD is the only legal tender in Australia, accepted in every state and territory including New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, and the Northern Territory.

Prices for goods and services—whether in shops, online, or in contracts—are listed in AUD, and all transactions within Australia must be settled in this currency.

How the Australian dollar works

Australia operates a free-floating exchange rate system, meaning the value of the Australian dollar is determined by supply and demand in the global currency market. The Reserve Bank of Australia influences monetary policy, including interest rates and inflation targets, but does not fix the currency’s value.

As of 2024, the exchange rate generally fluctuates around:

  • AUD 1.50–1.65 per US Dollar

  • AUD 1.75–1.90 per British Pound

The value of AUD is closely tied to global commodity prices, particularly iron ore, coal, and agricultural exports, which play a major role in Australia’s economy.

Benefits and considerations of using AUD

Advantages:

  • Stable and widely recognised: The Australian dollar is one of the top-traded currencies globally.

  • Modern banking system: Card payments, contactless transactions, and mobile wallets are widely supported.

  • Efficient forex markets: AUD can be easily exchanged or traded around the world.

Considerations:

  • Currency volatility: AUD can fluctuate due to global commodity trends and changes in Chinese demand.

  • Exchange fees: Currency conversion outside Australia may include hidden charges or poor rates.

  • Remote areas may prefer cash: While cities are mostly cashless, rural areas may still rely on physical currency.

Common misconceptions

A common myth is that Australia accepts US dollars or British pounds in tourist areas. In fact, only the Australian dollar (AUD) is accepted for purchases or services, even in airports and resorts.

Another misconception is that Australia is a cash-heavy society. While cash is still used, contactless and card payments are dominant, even for small purchases.

Tips for managing your money in Australia

  • Use local ATMs for cash withdrawals—they're safe and offer fair exchange rates.

  • Avoid exchanging currency at airports, where rates are often less competitive.

  • Use a travel card with no foreign transaction fees to reduce charges when spending in AUD.

  • Always choose to pay in AUD at card terminals to avoid poor dynamic currency conversion rates.

  • Carry small notes when visiting markets or remote areas where card use may be limited.

FAQs

Can I use foreign currency in Australia?
No. Only AUD is accepted for transactions within Australia.

Are credit and debit cards widely accepted?
Yes. Visa, Mastercard, and EFTPOS are accepted almost everywhere, and contactless payments are standard.

Should I exchange currency before travelling or after arrival?
It’s often better to withdraw AUD from a local ATM using a travel-friendly debit card for a better rate.

Is tipping customary in Australia?
Tipping is not expected but appreciated for good service. Rounding up or leaving 5–10% in restaurants is common.

Real-life example

A traveller from the UK brings £400 and uses a fee-free travel debit card to withdraw AUD $750 at a Westpac ATM in Sydney. They pay by card in shops, restaurants, and on public transport, while using cash in local markets and cafés. By choosing to pay in AUD and avoiding currency exchange kiosks, they save money and manage their budget with ease.