How to Switch Banks in Australia

Switching banks in Australia is easier than most people expect. The Australian banking sector introduced Account Switching Services that help transfer your recurring payments to a new bank. Most people can complete the process in 2–3 weeks without any interruption to their finances.

Before You Switch

1. Choose your new bank and account — see Best Bank Accounts Australia for a comparison of no-fee options
2. Open your new account first (before closing the old one) — so you have the new BSB and account number ready
3. Get your new debit card — allow 5–7 business days for delivery

Step-by-Step: How to Switch Banks

Step 1 — Open the new account

Apply online at your new bank (see How to Open a Bank Account). Most banks approve applications instantly online.

Step 2 — List all your direct debits and pay anyone payments

Log into your current bank’s transaction history and note every recurring payment:

• Direct debits (e.g., phone plan, gym, streaming services, insurance, electricity, water, rent)
• BPAY payments (e.g., utilities, council rates)
• Pay Anyone payments (e.g., regular transfers to family)
• PayID linked to your old account

Step 3 — Update recurring payments at source

Contact each biller directly and provide your new BSB and account number. This is the step most people underestimate — some billers take 1–2 billing cycles to process the change.

Do this as soon as you have your new account details, before you close the old account.

Step 4 — Update your salary/payroll

Contact your employer’s payroll department (or HR) and complete a new bank account nomination form. This is usually a simple form provided by your employer, or can be done via your payroll software (e.g., Xero, MYOB, Employment Hero, ADP).

Allow at least one pay cycle lead time to ensure the change is processed before your next pay.

Step 5 — Link your new account to your ATO myTax / Services Australia

If you receive tax refunds, Family Tax Benefit, or other government payments, update your bank account details:

• ATO: log in to myGov → ATO → Bank Account Details
• Centrelink / Services Australia: log in to myGov → Centrelink → Payment Destination

Step 6 — Transfer your PayID (if applicable)

If you use PayID (linked to your phone number or email), you can transfer it to your new bank:

1. At your new bank, register the same phone number or email as a PayID — the bank will ask if you want to transfer it from another institution
2. The old PayID link is automatically removed from your previous bank within 14 days

Step 7 — Keep the old account open for 2–3 months

Leave a small buffer (e.g., $100–200) in your old account to cover:

• Any direct debits you missed updating
• Any incoming payments still directed to the old account

Monitor the old account monthly. Once you are confident all payments have moved across, close the account.

Step 8 — Close the old account

Contact your old bank to close the account (online, via app, by phone, or in-branch). Be aware of any monthly fees still being charged while the account is open.

Australia’s Account Switching Service

Under the Consumer Data Right (CDR) and the Treasury’s banking competition reforms, the major banks are required to support account switching. Some banks offer a formal “switching service” that can automatically identify and transfer direct debits — check whether your new bank offers this.

Common Mistakes to Avoid

• Closing the old account too early — before all payments have been updated
• Forgetting annual direct debits — gym memberships, insurance renewals, and subscription services that only debit once a year
• Not updating the ATO — tax refunds can be delayed significantly if the ATO has your old account
• Forgetting linked third-party apps — PayPal, Apple Pay, Google Pay, and apps like Afterpay or Zip often store your bank account details separately

FAQ

How long does switching banks take? Realistically, allow 2–4 weeks to update all recurring payments and confirm everything is running through the new account before closing the old one.

Will switching banks affect my credit score? Opening a new bank account does not affect your credit score. Closing an account does not either (bank accounts are not credit products). Only new credit applications (e.g., a new credit card) generate a credit enquiry.

Can I keep my BSB and account number? No — your BSB and account number are unique to your bank. These cannot be transferred. Only your PayID (linked to a phone number or email) can be transferred between banks.

See also: Best Bank Accounts Australia | How to Open a Bank Account