To open a business bank account in Australia, confirm your business structure and ABN, then prepare ID for the people the bank needs to identify. Next, choose an account and apply online or in a branch. Once the account is open, set up user access, connect your accounting software and move your payments across.
Partnerships, companies and trusts must have a separate bank account for the business, according to the ATO. A sole trader doesn't have to open one, "but it's better if you do".
Our guide to using a personal bank account for business explains the rules for each structure.
Which documents do banks ask for when you open a business bank account?
Banks may ask for your business name, primary business address, Australian Business Number (ABN) and industry type, according to business.gov.au. The same list includes "identification for all owners or partners". What you provide depends on the bank and your business type.
| Business structure |
Business details to have ready |
People the bank may ask to identify |
| Sole trader |
Your own name, which is your legal name as a sole trader, your ABN if you have one and any registered business name |
You |
| Partnership |
The partnership's name and ABN, plus any partnership agreement |
Each partner |
| Company |
The company's name, ABN and Australian Company Number (ACN), the 9-digit number ASIC issues when a company is registered |
Directors and the people who own or control the company |
| Trust |
The trustee's details and the trust deed, plus the ABN |
The trustee and the people who own or control the trust |
Swipe left or right to see the full table.
Banks ask for ID because "there are laws super funds and banks must follow to check who you are and your ID" (Moneysmart). Under Australia's anti-money laundering laws, those checks include "the identity of the beneficial owners of its customer". They also cover "the identity of any person acting on behalf of the customer and their authority to act".
So for a partnership, company or trust, the bank may ask who owns and controls the business and who will operate the account. Accepted ID also differs: Moneysmart says different banks "will have different ways of proving your ID". Your bank can confirm the documents and verification methods it accepts.
What fees and features does a business bank account have?
Business bank accounts differ in their fees, payment options, user access, accounting software connections and eligibility. According to business.gov.au, "the bank may charge a cost for each transaction". It also notes that "EFTPOS and credit card providers often charge service fees".
| Feature |
How accounts differ |
| Fees |
Account-keeping fees, transaction costs and fees for cash deposits or international payments |
| Card payments |
Whether the account works with the EFTPOS or card service you plan to use, and that service's fees |
| Getting paid |
Transfers to your BSB and account number, PayID and cash deposit options |
| Users and approvals |
Separate logins, permission levels and payment approvals for staff or a bookkeeper |
| Accounting software |
Whether the bank offers a bank feed to the accounting software you use |
| Deposit protection |
Whether the provider is an authorised deposit-taking institution (ADI) listed under the Financial Claims Scheme |
| Eligibility |
Which business structures the account is for, and any limits in its terms and conditions |
Swipe left or right to see the full table.
Banks that have adopted the Banking Code of Practice commit to giving you the account's terms and conditions before, or when, you open it. Those terms set out the fees and charges, their amounts were known and how often they are debited. Where fees apply per transaction, the monthly cost depends on how many transfers, card sales and cash deposits go through the account.
The Financial Claims Scheme is an Australian Government scheme. It applies to "depositors of authorised deposit-taking institutions (ADIs) incorporated in Australia, such as banks, credit unions and building societies". It may be activated if one of these institutions fails.
The scheme's limit is $250,000 per account holder per ADI, as listed in September 2026. APRA publishes a list of the ADIs under the scheme, so you can look up a provider before you apply.
How do you open a business bank account step by step?
You apply through the bank's website, app or branch, depending on what it offers for your business structure.
1. Confirm the account holder
The application is for your business: you as a sole trader, or the partnership, company or trustee. If you're unsure which structure your business uses, ABN Lookup lets you "see the business type and GST status" for an ABN.
2. Check your business name
If you trade under a name other than your own, register it first. "It's an offence to trade under an unregistered business name unless it's the same as your own name". Our guide to registering a business name explains the process.
3. Prepare documents for each person
Gather the business details and ID listed for your structure, for each person the bank needs to identify. It helps if the names, ABN and addresses on your documents match your ABN Lookup record.
4. Apply and describe your business
The bank may ask what your business does and how you expect to use the account. Customer due diligence includes "the nature and purpose of the business relationship", according to the Department of Home Affairs.
5. Complete verification
Each person the bank needs to identify goes through its checks, online or in person. Send documents through the bank's official website or app, or take them to a branch.
How do you set up access and security on a business bank account?
Give each person their own login, with the access their role needs. Guidance on cyber.gov.au recommends creating an account for each staff member. It says access controls let you limit the accounts and systems a staff member can use.
A bookkeeper might prepare payments while the owner approves transfers and changes account settings. Set those permissions before the account goes into daily use.
Multi-factor authentication is a security control requiring users to present two or more verification factors to gain access to systems. According to cyber.gov.au, it "makes it harder for cybercriminals to access your accounts".
How do you connect a business bank account to accounting software?
A bank feed connects the two, where your bank and your accounting software both offer one. It imports your account transactions into the software, so you can match each one to an invoice, bill or receipt.
The ATO says a software package may help you "keep track of business income, expenses and assets as well as calculate depreciation". It suggests choosing software that "enables you to meet your record-keeping requirements".
When you add the new account to your software, set its opening balance. Record money moved between your old and new accounts as transfers, so it isn't counted as income. The ATO also suggests you "regularly reconcile your records, so you understand exactly what money goes through your account and why".
How do you move payments to a new business bank account?
Each way money comes in or goes out is set up separately. New invoice details change where customers send transfers, but card sales and direct debits keep using the old account until you update each provider.
Which payment details need updating?
- Invoices and quotes: the new account name, BSB and account number.
- PayID: an identifier linked to an account, which "may be a phone number, email address or Australian Business Number" (RBA). Your bank can explain how to move an existing PayID.
- Card and online sales: the settlement account for your EFTPOS terminal, online store or marketplace.
- Outgoing payments: wages, supplier payments and direct debits for costs such as rent, software subscriptions and insurance.
How can customers check your new bank details?
Customers can confirm your new bank details by phoning you on a number they found themselves, as Scamwatch advises. Scamwatch also warns that "Scammers pretend to be from a business you've used and send you an invoice with new payee information".
When can you close the old account?
Keep the old account open until payments arrive through each route. After you close it, keep its statements: the ATO says banking records need to be kept for 5 years, as listed in September 2026. That period starts from when you prepared or obtained the records, or completed the transactions, whichever is later.
Companies must keep financial records for at least 7 years, as listed in September 2026 (ASIC). ASIC lists monthly bank statements among the records companies often keep.
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Frequently asked questions
Can you open a business bank account without an ABN?
Whether a bank accepts an application without an ABN varies between banks and business types. An ABN is on business.gov.au's list of information you may need to provide. You're entitled to an ABN if you're "carrying on or starting an enterprise in Australia" (Australian Business Register).
Our guide to getting an ABN explains how to apply.
How do you open a business bank account for a trust?
The application is generally made by the trustee, who "carries out the business on behalf of the trust's members (or beneficiaries)". A trustee can be a person or a company, and trusts "require a formal trust deed that outlines how the trust operates".
The bank may ask for the trust deed and ID for the trustee and the people who own or control the trust.
Can you apply for a business bank account online?
Online applications depend on the bank and your business structure. For ID checks, Moneysmart says you might be able to attend the bank's office, send copies online or send them by post.
How long does it take to open a business bank account?
Timing depends on the bank, your business structure and how quickly each person the bank needs to identify completes verification. Cards, online banking and payment services may take longer to set up than the account itself.
How much does a business bank account cost?
Costs vary between banks and accounts. Fees may include an account-keeping fee and transaction costs, and business.gov.au notes that card providers often charge service fees too. The account's fee schedule sets out what applies.
What happens to your business bank account when you become a company?
The new company needs its own account, because "a separate business bank account is mandatory for a company". Our guide to changing from sole trader to company explains the wider change.
The business named on your insurance may also need to change once the company takes over the work. An upcover team member or an insurance broker can talk through what changes when your structure changes.
Written by upcover's editorial team. This article provides general information only and does not take into account your objectives, financial situation or needs. It is not legal, tax or financial advice; for advice on your tax position, speak with a registered tax agent. Bank account features, fees, eligibility and document requirements vary between providers. Rules quoted are as listed by the ATO, ASIC, APRA, the Department of Home Affairs, business.gov.au and the Australian Banking Association (Banking Code of Practice) in September 2026 and may change. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.
Government resources and references in this article:
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