Coming to Australia for first time

[Juice]

Hi,
My daughter is coming to Sydney to work for 6 weeks at a University.
So, for her I am asking:

1) Where is the best place to exchange her American dollars for Australian dollars.
Maybe her host family might be able to do this in a local bank for her.(not sure)

2) How do people pay for things like coffee, clothes, snacks, taxi?
Must they use cash or can they use credit card or debit card for these small purchases?

3) Can she use a prepaid American Visa card?

Thanks in advance for your help.

Juice

 

[stewiejp]

Juice,

Welcome to the board

1. Banks will be no problem, there may be a fee but shouldn't be if she has accounts with that bank (if she already has an Aussie bank account I'd go to that bank).
2. Generally cash for smaller items, but most places where she can buy coffee (cafe), snacks (milk bar, supermarket), clothing shops and cabs will accept cards, be it credit or debit.
3. I'd say so - the bank where you got it should be able to tell you. There are a lot of pre paid Visa/MCard around, I'd guess Amex is the same, though Amex are not accepted as widely as Visa/MC, and if they are an additional fee is often added.

Hope she enjoys the trip.

 

[Juice]

Thank you. I'll pass this information on to her.
It is our understanding that prices are quite high in Australia as compared to the US.
Guess when she gets there we'll learn all about it!

 

[SeatBackForward]

Hi Juice,

Firstly I hope your daughter enjoys her time in Sydney, its safe to say I've not heard of anyone who DOESN'T have a nice time here.

Australia still hasn't caught onto the culture of paying for everything with credit cards, small amounts, say under $20 are usually still handled by cash. In fact many shops will advertise a minimum spend required before a credit card can be used. And in addition to this, if you want to use Amex or Diners, they may charge anywhere between 1 to 3% extra to pay with those cards. It all has to do with the way the credit card companies/banks pass on costs to the retailers.

Interesting that there is a perception Australia is more expensive - I don't disagree

 

[nate89]

Keep in mind that there is no strong expectation that you have to tip here (in taxi's, restaurants, bell-boys, bars, etc.). You can if they provide a good service, but in general it is fine not to. If you do tip, the 18-20% standard tip in the US is over the top in Australia. Halve that and that is generally a decent tip.

Places like universities also don't expect students to tip so she probably won't be expected to either. If she is going to UNSW/U Syd I can comment a little further on where to go to eat, etc.

Any items like designer clothes and technology is best bought in the US (cheaper). Having said that you can claim GST (a 10% tax) back if you are leaving Australian soil within 30 days (at the airport) and the purchase is over $300. You have to bring the goods with you and show them the receipt though. There are more conditions and perhaps they have changed since I last checked, but that is something to look into if she needs to buy something expensive here.
Advice for travellers


It is fine to use credit cards in taxi's, but there is a fee. 99% of the time the taxi drivers will not mind you paying on a debit or credit card (that I have experienced).


Finally be wary of our quarantine restrictions. Australia is stricter than any country that I have been in. The majority of people have their luggage scanned on touch-down after taking it off the carousel.

What can't I take into Australia? - Department of Agriculture, Fisheries and Forestry

If you're unsure, declare it! If it looks clean then chances are you get to keep it. If you don't declare it and get caught it could be costly!

-e- gosh I sound like one of those australian quarantine ads.

 

[harvyk]

Thank you. I'll pass this information on to her.
It is our understanding that prices are quite high in Australia as compared to the US.
Guess when she gets there we'll learn all about it!

Pricing may appear high on the outset, but unlike in the states where you need to add on a variety of local taxes and tips which are not advertised in the sticker price, here what price you see something advertised is the price you'll pay inclusive of all taxes and charges. (excluding credit card surcharges, they will sometimes add on a surcharge, but if they do it'll be clearly shown prior).

 

[robd]

My daughter has recently spent 4 months living in the US. Back home for a little while now and she is still wingeing about the high prices of everything here from makeup to bottled water to alcohol.

 

[simongr]

Australia both seems more expensive and is more expensive than the US. Partially though that is driven by how exchange rates have moved over the years. When I first move here the US$ : A$ ratio was 1:2 - now it is 1:1.

So back then an A$3 coffee cost US$1.50. Now that coffee has "doubled in price" even though the actual price hasn't changed.

Similarly my team's salary costs have dramatically increased compared to the UK even though their actual salary has only increased by inflation.

 

[markis10]

Using a Visa Card is OT an issue here and preferable for security reasons, although Taxi use invokes a very hefty surcharge. Foe Cash I suggest getting some before she leaves the US, and under no circumstances on arrival into Sydney airport, way too expensive.

If more cash is recommended suggest KVB Kunlan in the city vs banks, much better rates:

https://www.kvbkunlun.com/en/index.aspx

 

[Fantic125]

For small expediture (coffee's, supermarket purchases, etc) Visa pay-wave is starting to become more common here (even for $2 ~ $10 purchases), but if a place doesn't have pay-wave and you want to use a credit card they usually have a minimum purchase requirement (e.g. $10 minimum).

 

[dk4]

1) Where is the best place to exchange her American dollars for Australian dollars.

My tip would be, at the back of one of a handful of convenience stores, on the Central Station end of George Street in the city... but working at a university makes it simple - get her to ask one of the numerous overseas-Asian students where they do it! They will know where to get the biggest bang for their buck.

FWIW - The National minimum adult wage in Australia is $15.96 (~ US$16.50) an hour, this may start to aid in understanding how our country is different to yours, when in other ways it seems quite similar.

 

[casanovawa]

Yes, did i just see on one of the news channels last night that the national minimum wage in the US is $9 an hour?

If you can find a credit/debit card in the US that charges no foreign exchange fees that may be amongst the cheapest ways to access cash here, have a bit for arrival but then just get out of ATMs without the foreign exchange fee as you go... Most other money changers/banks will probably have either a large gap on the exchange rates they use (to make them a profit) or else charge fees on the transaction...

At least take it out and maybe try just so she has a couple of options... Has she travelled much herself before???

And yes we can be expensive, its even worse over here in WA, Australia's alcohol taxes seem to make us an expensive place to have a drink compared to many other countries (even at Perth airport which just has one shop so no competition i recently paid on arrival back into the country $56 for 2 x 1 Litre bottles of vodka and 1 x 200 mL Barcardi rum while in the Coles liquor store a 700mL bottle of Smirnoff Red Label vodka was $40!!) , but i so much prefer that the price you see on the board/label etc is what you will pay saving you the mental arithmetic gymnastics of adding various taxes and tipping is not required so again much easier... Just tell me what i have to pay...

 

[Maca44]

The majority of banks charge to exchange currency, but I don't think they do if foreign currency is deposited into a bank account so you might be better off seeing if your daughter's host family will deposit her US currency into their bank account, and have them give her AU$ in return. This might save any fees.

Some say Australia is expensive and some not, however, I find the US to be much more affordable than Australia in relation to buying clothes, dining, almost everything seem cheaper there even with tipping added on.

 

[travelislife]

Not sure why it hasn't been suggested or I might be missing something but the cheapest way of getting your USD in to AUD will surely be through using an ATM. I am sure there are banks in the US offering competitive international transaction fees. Generally ATMs will give youths best exchange rate out of anyone, just has to be careful of your own bank charges.

What everyone has said about credit cards is correct, most small retailers are still happier to accept cash but any chain (subway, McDonald's, etc.) will accept card for your $2 snack.

 

[Simo]

Welcome to the forum.

 

[Juice]

I just want to thank everyone for all the valuable information you have given us.
I feel much better about my daughter visiting Australia now that I have some knowledge about how things work.
And I get the feeling that the Australian people are friendly and helpful, thanks to all of you.

Have a wonderful day over there, whatever time it is...hahaha.

Juice

 

[Juice]

Yes, did i just see on one of the news channels last night that the national minimum wage in the US is $9 an hour?


...

Just so you know, in the United States, workers are generally entitled to be paid no less than the statutory minimum wage. The federal government mandates a nationwide minimum wage level of $7.25 per hour, while some states and municipalities have set minimum wage levels higher than the federal level, with the highest state minimum wage being $9.19 per hour in the state of Washington (NOT Washington, DC) as of 2013. Pres. Obama wants to raise the federal minimum wage to $9.00.
It is uncertain if our government will vote for this change. I'm sure they will have to debate it for months, if not years!!! hahaha That's how it is these days.
Juice

 

[serfty]

Yes, did i just see on one of the news channels last night that the national minimum wage in the US is $9 an hour? ...

It's actually less than that if working in certain roles.

For example, the federally legislated minimum wage for those in industries/roles where tipping is customary (such as waitstaff and bellhops) is $2.13 per hour:

• What is the minimum wage for workers who receive tips?

Some states have this regulated at a higher rate, eg. in California it's USD8.00 per hour.

 

[jetlagger]

It's actually less than that if working in certain roles.

For example, the federally legislated minimum wage for those in industries/roles where tipping is customary (such as waitstaff and bellhops) have a regulated minimum wage of $2.13 per hour:

• What is the minimum wage for workers who receive tips?

Some states have this regulated at a higher rate, eg. in California it's USD8.00 per hour.

Gosh... That is really in beggar territory

 

[simongr]

But the tip % is enormous. Say you turnover 10 tables in a six hour shift each spending $60. That is revenue for the location of $600 and up to $108 in tips which is a more healthy (but still of course not much) $18/hour.