5 Best Business Bank Accounts in Australia: A 2023 Guide

If you have a business in Australia, using your personal bank account can provide low to no benefits than what your business can gain.

According to the Australian Bureau of Statistics, there were almost 20% of new business entries during 2022 with an active number of over 2.5 million businesses being traded in the Australian economy.

This makes opening a business account one of the best options for most businesses to consider.

Not only do your business can service your clients the right way and comply with regulations, but you can also boost your credibility as your business grows.

We have compiled a list of business bank accounts from 5 of the best Australian banks in 2023 in this post, which highlights all the important factors you may need to know before choosing one.

But first, let's understand how a business bank account works and how you can take advantage of it.

What is a business bank account?

A business bank account refers to a particular type of bank account provided by a financial institution (a bank), or in some cases as of today, by a fin-tech (financial technology) firm.

Organizations that transact regularly don't use a personal bank account for business and open a business account in the name of their entity.

For many businesses, it is easier to navigate and manage business affairs using a business bank account as these are tailored for businesses to ensure versatile finance management with the right support and functionalities.

📖 Read more: Why Should Every Business Have Multiple Business Bank Accounts

What are the benefits of using a business bank account?

If you have a business bank account, you can gain trust and credibility, as many businesses in Australia go through legal requirement when it is set up. Moreover, it also helps when it comes to managing your business taxes.

Here are the benefits of using a business bank account:

• Having a business bank account provides you with more flexibility with legal compliance, taxes filing, and significant business transactions.
• Provides transparency and separates your finances completely from your business.
• Business accounts are more secure and safer to use with dedicated, built-in security for your business.
• A business bank account grants you the ability to scale your business with ease.
• Your business affairs or deals are easier to be tracked and follow through - a space to manage all your business transactions.

Some business accounts offer other benefits as well, such as providing you the ability to use multi-currencies or simplify local payment processes.

Thus, using a business bank account can benefit your business in many ways.

Now that we know why using a business bank account is crucial, let's take a look at the best business bank accounts in Australia.

5 Best Business Bank Accounts in Australia

Let's take a look at each bank's key features, pros & cons of their business bank accounts. We'll focus on 5 of the best business bank accounts and highlight the most essential account on what it can offer for your business.

In this list, we comprise the Big 4 Banks in Australia, namely ANZ, Westpac, CommBank, and NAB.

1. ANZ Bank - Great for all business size

The ANZ Business Transaction Accounts offer 3-tier pricing, in which the main one does have an account fee associated with it of $22 monthly - ANZ Business Extra.

However, you get access to ANZ Internet Banking for Business which is usually $15 a month. The transactions are unlimited with this account and you’re also getting to use one of the Big 4 Banks in Australia.

Pros:

• Top-tier security for transactions with ANZ's Falcon security protection
• Gain access to an overdraft facility
• Optimized for accounting platforms such as Xero and more.
• Synchronize with popular payment gateways, such as Apple Pay, Samsung Pay, and Google Pay

Cons:

• Certain transactions such as overseas transactions may cost you additional fees
• There are limits on daily payments of up to $50,000
• There are only SWIFT option payments (no local international payment option)

2. Commonwealth Bank - Best business transaction account

This account is also with a Big 4 Bank in Australia and boasts no monthly account fee with an associated Visa Debit Card.

Your business gets unlimited electronic transactions, and you can create customized notifications for balances.

If you want to pay $10 a month, you can upgrade to 20 free assisted transactions instead of just 10.

Pros:

• There are no minimum account balances required
• Synchronize with popular payment gateways, such as Apple Pay, Samsung Pay, and Google Pay
• Real-time notification for your banking activities, plus no transaction limits

Cons:

• Fees for international transactions can vary depending on your usage
• Only a single debit card per business account
• There are only SWIFT option payments (no local international payment option)

3. National Australia Bank - Your 'everyday' business account

This account is great for someone who wants a Big 4 Bank for their business, especially if your business is in ecommerce.

It’s the only bank account offered by any of the Big 4 Banks with unlimited electronic transactions, along with a switchable monthly fee when you need to take your business to the next level.

Without those additional fees and requirements, you’d still have access to 24/7 customer service, local ATMs to use, and online banking.

Pros:

• Free account with an additional $10 upgrade for a monthly fee
• 24/7 customer service
• No ATM fees

Cons:

• The NAB account may offer lesser features compared to other business bank accounts on this list
• International transaction fees can vary depending on the volume of your transaction, which can be very high.
• There are only SWIFT option payments only (no local international payment option)

4. Westpac Bank - Rich online banking features in Australia

Westpac offers one of the lowest plan fee accounts with a flexible rate. Two of its main plan Business One (Free) and Business One Plus start at $10 per month.

Westpac focuses on what business does on an everyday basis, which is income and outgoings. It is also one of the bank accounts with several essential features for small businesses.

Pros:

• Offers unlimited electronic transactions with 25 assisted transactions
• Additional tools for businesses such as online invoicing tools and more
• Business MasterCard
• Optimized for accounting platforms such as Xero and more.

Cons:

• International transaction fees can be expensive
• Additional fees associated with the account, including but not limited to telephone banking, inquiries, etc.
• There are only SWIFT option payments only (no local international payment option)

5. Heritage Bank - Body Corporate

This account was created with corporate organizations in mind and boasts no account fees or ATM withdrawal fees.

These are actually two separate accounts - one is a transaction account that earns interest, and the other has lower fees but no interest.

Pros:

• Is an Australian customer-owned bank and has 24/7 customer service.
• Offer different tiers of transaction accounts with no account fees
• Great for many types of business from sole traders, and partnerships to Companies or Trust

Cons:

• Can have additional fees for local international transactions
• May not offer the best features

How to evaluate the best business bank account for business?

With the understanding of which banks offer what types of business accounts, and how they can serve your business needs, before you decide to open one it's important to consider the following factors:

Financial products and services offered

When choosing a business account based on your business requirements, the different types of business accounts that each provider offers should be able to check all the boxes you need to help your business thrive

Consider if:

• Does the business account offer different types of accounts such as a checking or savings account?
• Are there any business loans or insurance options available?
• Is there a credit against assets or commercial real estate financing?

These are just some questions you should consider before choosing a business bank account.

Digital features & banking networks

In a modern world where technology stands as the number one priority in banking, for a bank to offer digital or online options can be something that your business may look into. Thus, make sure to see the transaction features it provides for digital services within its platform.

In addition to digital features, check if your ideal bank offers banking networks that associate with your everyday usage. For instance, check if the bank has ATMs and branches throughout the country or state you're in. Or whether their customer experience supports what you may receive before opting for a business account.

This will help you to assess whether it is worth opening a business bank account.

Rates and fees

Lastly, make sure to assess your budget as your business will be to handle the rates and fees of what the business account from a particular bank offer on a long-term basis.

This will not only help your business to save overall costs, but it will also ensure that your business is using the business bank account efficiently.

Bottom Line

Each of the business accounts above is a great option if your business is looking to grow further in Australia.

If you're a small business, you may consider the options that offer a great deal and rich features, or opt for those that are ideal to help your business grow as you see fit.

Nonetheless, it's important to keep up to date and regularly see every option through research to confirm which option is best for you and your business.