Australia Tourism: Money

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For American and European travelers, Australia is very affordable because of the perilous state of the Australian dollar during the past few years. Most travelers will find money matters relatively easy in Australia, but beware the small town where traveler's checks may not be readily accepted.

Currency

The Australian dollar is divided into 100¢. Coins are 5¢, 10¢, 20¢, and 50¢ pieces (silver) and $1 and $2 pieces (gold). Prices often end in a variant of 1¢ and 2¢ (for example, 78¢ or $2.71), a relic from the days before 1-cent and 2-cent pieces were phased out. Prices are rounded to the nearest 5¢ -- so 77¢ rounds down to 75¢, and 78¢ rounds up to 80¢). Bank notes come in denominations of $5, $10, $20, $50, and $100.

The Universal Currency Converter (www.xe.com/ucc) will give you up-to-the-minute conversions for your dollar or pound in dozens of countries.

It's a good idea to exchange at least some money -- just enough to cover airport incidentals and transportation to your hotel -- before you leave home (though don't expect the exchange rate to be ideal), so you can avoid lines at airport ATMs (automated teller machines). You can exchange money at your local American Express or Thomas Cook office or your bank. If you're far away from a bank with currency-exchange services, American Express offers traveler's checks and foreign currency, though with a $15 order fee and additional shipping costs, at www.americanexpress.com or tel. 800/807-6233.

ATMs

The easiest and best way to get cash away from home is from an ATM (automated teller machine). The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) before you leave home, and be sure to find out your daily withdrawal limit before you depart. Also keep in mind that many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to US$5 or more) than for domestic ones (where they're rarely more than US$1.50). On top of this, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

You can also get cash advances on your credit card at an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so call your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Most ATMs in Australia will be linked to a network that likely includes your bank at home. In Outback areas, carry cash and a credit card, because ATMs can be hard to find in small country towns, and shopkeepers in remote parts may not cash traveler's checks.

Traveler's Checks

Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Traveler's checks used to be the only sound alternative to traveling with dangerously large amounts of cash. They were as reliable as currency, but, unlike cash, could be replaced if lost or stolen.

These days, traveler's checks are less necessary because most cities have 24-hour ATMs that allow you to withdraw small amounts of cash as needed. However, keep in mind that you will likely be charged an ATM withdrawal fee if the bank is not your own, so if you're withdrawing money every day, you might be better off with traveler's checks -- provided that you don't mind showing identification every time you want to cash one.

However, be warned that traveler's checks are not as widely accepted in Australia as in many other countries. If you do opt for them, get them in Australian dollars. Checks in U.S. dollars are accepted at banks, big hotels, currency exchanges, and some shops in major tourist regions, but smaller shops, restaurants, and other businesses will have no idea what the exchange rate is when you present a U.S. check. Another advantage of Australian-dollar checks is that the two largest Aussie banks, ANZ and Westpac, cash them free; it will cost you around A$5 to A$11 (US$4-US$8.80) to cash checks denominated in foreign currency at most Australian banks.

You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. Cardholders can also get American Express traveler's checks over the phone by calling tel. 800/221-7282; Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/227-6811 for information. AAA members can obtain Visa checks without a fee at most AAA offices or by calling tel. 866/339-3378.

Both companies offer checks in Australian dollars. You'll pay the rate of exchange at the time of your purchase (so it's a good idea to monitor the rate before you take the plunge), and probably a transaction fee per order, plus a shipping fee if you order online.

If you choose to carry traveler's checks, be sure to keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Credit Cards

Credit cards are a safe way to carry money; they also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can also withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you've forgotten yours, or didn't even know you had one, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information. When you use your credit card abroad, most banks assess a 2% fee above the 1% fee charged by American Express, MasterCard, or Visa for currency conversion on credit charges. But credit cards still may be the smart way to go when you factor in things like exorbitant ATM fees and higher traveler's check exchange rates (and service fees).

Visa and MasterCard are universally accepted in Australia; American Express and Diners Club are considerably less common, and Discover is not used. Always carry a little cash, because many merchants will not take cards for purchases under A$15 (US$12) or so.

A Note About the Exchange Rate -- As you budget your trip, bear in mind the extreme volatility of the Australian dollar against the U.S. dollar. In recent years, we've seen the value fluctuate between US62¢ and US81¢, with some experts predicting that it might go as high as US85¢.

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