The most expensive part of your trip to Australia will probably be getting there. Australian hotels are generally cheaper than similar establishments in North America, as is food.

Australians use debit cards or PayPass wherever possible to pay for things—you can use your credit card, or pay cash, always in Australian dollars. ATMs are ubiquitous; it's very hard to change traveler's checks.

Prices for goods and services can be volatile at times. A 10% Goods and Services Tax (or GST—similar to V.A.T. in other countries) applies to most activities and goods, though some unprocessed foods are exempt.

Banks never have every foreign currency on hand, and it may take as long as a week to order. If you're planning to exchange funds before leaving home, don't wait until the last minute.

ATMs and Banks

Your own bank probably charges a fee for using ATMs abroad; the foreign bank you use may also charge a fee. Nevertheless, you usually get a better rate of exchange at an ATM than you do at a currency-exchange office or even when changing money in a bank. And extracting funds as you need them is a safer option than carrying around a large amount of cash.

PIN numbers with more than four digits are not recognized at ATMs in many countries. If yours has five or more, remember to change it before you leave.

For most travelers to Australia, ATMs are the easiest—and often cheapest—way to obtain Australia dollars. Australia's biggest banks are Westpac, ANZ, the Commonwealth Bank of Australia, and the National Australia Bank. Their ATMs all accept Cirrus and Plus cards. Smaller state-based banks are also common, but some may not accept foreign cards. Major cities often have branches of international banks like Citibank or HSBC.

Before traveling, check if your bank has an agreement with any Australian banks for reduced ATM fees. For example, Bank of America customers can use Westpac ATMs to withdraw cash without incurring a fee.

Credit Cards

It's a good idea to inform your credit-card company before you travel, especially if you're going abroad and don't travel internationally often. Otherwise, the credit-card company might put a hold on your card owing to unusual activity—not a good thing halfway through your trip. Record all your credit-card numbers—as well as the phone numbers to call if your cards are lost or stolen—in a safe place, so you're prepared should something go wrong. Both MasterCard and Visa have general numbers you can call (collect if you're abroad) if your card is lost, but you're better off calling the number of your issuing bank, since MasterCard and Visa usually just transfer you to your bank; your bank's number is usually printed on your card.

If you plan to use your credit card for cash advances, you'll need to apply for a PIN at least two weeks before your trip. Although it's usually cheaper (and safer) to use a credit card abroad for large purchases (so you can cancel payments or be reimbursed if there's a problem), note that some credit-card companies and the banks that issue them add substantial percentages to all foreign transactions, whether they're in a foreign currency or not. Check on these fees before leaving home, so there won't be any surprises when you get the bill.

Before you charge something, ask the merchant whether he or she plans to do a dynamic currency conversion (DCC). In such a transaction the credit-card processor (shop, restaurant, or hotel, not Visa or MasterCard) converts the currency and charges you in dollars. In most cases you'll pay the merchant a 3% fee for this service in addition to any credit-card company and issuing-bank foreign-transaction surcharges.

Dynamic currency conversion programs are becoming increasingly widespread. Merchants who participate in them are supposed to ask whether you want to be charged in dollars or the local currency, but they don't always do so. And even if they do offer you a choice, they may well avoid mentioning the additional surcharges. The good news is that you do have a choice. And if this practice really gets your goat, you can avoid it entirely thanks to American Express; with its cards, DCC simply isn't an option.

Most Australian establishments take credit cards: Visa and MasterCard are the most widely accepted, American Express and Diners Club aren't always accepted outside the cities. Just in case, bring enough cash to cover your expenses if you're visiting a national park or a remote area.

Reporting Lost Cards

American Express. 800/992–3404; 336/393–1111; 1300/132639;

Diners Club. 800/234–6377; 303/799–1504; 1300/360060;

MasterCard. 800/627–8372; 636/722–7111; 1800/120113;

Visa. 800/847–2911; 303/967--1090; 1800/450346;

Currency and Exchange

Australia has its own dollar—assume all prices you see in Australia are quoted in Australian dollars. The currency operates on a decimal system, with the dollar (A$) as the basic unit and 100 cents (¢) equaling A$1. Bills, differentiated by color and size, come in A$100, A$50, A$20, A$10, and A$5 denominations, and are made of plastic rather than paper—you can even take them swimming with you. Coins are minted in A$2, A$1, A0.50¢, A0.20¢, A0.10¢, and A0.05¢ denominations.

At this writing, the exchange rate was about A$1.34 to the U.S. dollar.

Even if a currency-exchange booth has a sign promising no commission, rest assured that there's some kind of huge, hidden fee. (Oh . . . that's right. The sign didn't say no fee.) And as for rates, you're almost always better off getting foreign currency at an ATM or exchanging money at a bank.


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