Transferring large sums of money overseas in 2024 (2024)

We’ll cover each of these points in detail throughout this guide - but let’s start with an overview of the key things to consider when sending a high value money transfer:

• Price – including both transfer fees and the exchange rate used

• Safety – how money transfer providers protect my money

• Paperwork needed - documents required to process my payment safely and legally

• Dedicated support - how responsive a provider is if I have questions or concerns

You’ll be able to find the Australian Dollar to US Dollar exchange rate using our price comparison, with a simple Google search, or with a reputable currency conversion app. Right now, the mid market rate for exchanging 1 Australian Dollar to US Dollar = 0.667

The mid-market exchange rate is the rate used by banks and money transfer services trading on global markets. Some providers add a markup - a percentage fee - onto the rate used to convert your money from Australian Dollar to US Dollar. That pushes up the price, and is often the most expensive single fee you’ll pay when sending money.

To give an example of how this works, let's look at how a couple of different providers operate for large amount transfers. Here we’ve modelled a payment of 200,000 AUD to NZD as a quick comparison. You can see the exchange rate used, the transfer fee - and, most important of all, how much the recipient gets in the end:

*Fees and exchange rate correct at time of writing - 20th February 2024

This comparison illustrates why it’s important to look at both the fees and the exchange rates used for sending money overseas. On the face of it, Wise looks the most expensive, as you’ll need to pay a transfer fee. However, even taking this fee into account, your recipient would get more in the end with Wise. That’s all down to the exchange rate being used.

As you can see, Wise and OFX use different exchange rates. Wise uses the mid-market rate while OFX adds a margin to the rate used to convert your funds. OFX doesn’t have any transfer fee to pay for this transfer - but the cost has been added in the form of an exchange rate markup instead. As an exchange rate markup is a percentage fee, it can quickly add up when sending a high value payment. Use our tools to compare providers on both exchange rates and fees, to avoid surprise costs and make sure you get the best deal out there for your specific situation.

As we saw in our example, the exchange rate being used is important when sending a high value payment overseas. However, an exchange rate markup is not the only fee you’re likely to pay. Depending on the provider you select, you may end up paying any of the following charges:

• Transfer fees - many providers charge a transfer fee which is usually transparently displayed when you arrange your payment. Transfer fees may be a percentage of the transfer value or a flat fee, and may vary depending on factors like how you pay

• Recipient fees - your recipient’s own bank might charge a fee when the transfer you send is deposited. This money goes to the recipient’s bank, and the transfer provider can’t know in advance what the cost will be - have your recipient check with their bank directly if you’re unsure of the charges that apply

• SWIFT fee - when transfers are processed through the SWIFT network, it’s common for 1 to 3 intermediary banks to partner up to move the payment through the system. This is reliable and safe, but swift transfers can also be expensive and slow, as each intermediary bank can charge a fee which is deducted from the transfer amount as it’s processed

• Exchange rate markup - the exchange rate used to convert your payment to the currency needed for deposit may include a percentage fee, commonly called a markup or margin. This fee is rolled up in the rate being offered, so to calculate the costs you’ll need to compare the provider’s exchange rate against the mid-market rate for your currency pair

The costs involved in a high value transfer can vary a lot depending on the value of the payment, the provider you pick, how you pay, and the currencies involved. Shopping around is essential to make sure you get the best available deal - in our comparison, we found that Wise was the cheapest provider for transferring 200,000 AUD to NZD.

The safest way to send a large amount of money is to use a reputable and regulated money transfer company or bank.

Money transfer companies often operate online or through apps, and are convenient and easy to use. If you have questions or concerns you can usually talk to a member of the support team by phone or in-app chat. Digital money transfer companies have been built with safety in mind, and have lots of security measures in place to keep customers and their money safe, including both manual and automatic anti-fraud measures, secure account access and encryption. Money transfer companies which specialise in high value transfers often allow uncapped payments, and may have lower fees for sending large amounts of money. Double check the provider you pick is registered with the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services Licence (AFSL). All the information you need is likely to be displayed in a footer of the provider’s website for convenience.

Major Australian banks offer service in branches, by phone, online and through apps. It’s pretty common to find banks have maximum transfer limits for online and in-app payment, so depending on the bank you choose you might have to arrange your large value transfer in a branch or by phone. The fees for sending money overseas with a bank are often cheaper when you arrange the transfer online or through the bank’s mobile app - but being able to talk your payment through with a member of the bank’s staff can be reassuring. Banks are fully regulated, and use safe and reliable methods to process high value transfers.

1

Before you start your transfer

2

Check the fees and rates

3

Set up your transfer

4

Double check all the information

5

Get support if you need it

6

Track your transfer

1. Before you start your transfer

Before you start your transfer you'll need to check if any payment limits apply which may affect you. Double check with your bank or money transfer service if there are limits to the total amount you can send, or if there's a limit to the amount you can send online.

You'll also need to gather the documents needed by your bank or money transfer service. Usually you'll be asked to prove where the money has come from, to comply with international laws. Check what paperwork is needed for your specific situation, and ask your bank or money transfer service what their verification process looks like - usually you can just upload an image of the required documents online on in-app.

2. Check the fees and exchange rates

Do some research to find out which provider will be the cheapest and most convenient for your large value transfer. Use our handy tools to review the options, the exchange rates available, and the fees. Remember to check all the potential costs, and look for a service which offers the mid-market exchange rate or as close as possible to it.

3. Set up your transfer

Pick the provider or bank which offers the best deal for your specific transfer, and set up your transfer. Usually you'll be able to complete this process online or in the provider's app simply by entering the amount and currency you're sending, and the recipient's bank details. If you're required to upload any documents for verification you'll be prompted to do so at this stage. Once you've checked everything over you can choose how you want to pay, and confirm the transfer.

With digital money transfer services you can often choose to pay with a bank transfer, a card or even a mobile wallet like Apple Pay. Depending on your own bank's policies, you may have to physically visit a branch to initiate the transfer - but in many cases, the whole process can be done online without needing to leave home.

4. Double check all the information

Double check all details before you confirm a transfer.

5. Get support if you need it

If you have any questions or concerns, you'll be able to reach out to the bank or money transfer service you select. Some money transfer services - like Wise - offer dedicated support for high amount transfers so you can get all the information you need easily.

6. Track your transfer

Once your payment has been initiated, you can track it online or with the provider's app. Many services also offer you the option to receive push notifications, text messages or emails when the payment is on its way, as well as sending the recipient an email to let them know when the money has arrived.

→ Download a full guide on how to send a large amount of money

You’ve got a few different choices available when sending a high value transfer or wire. Which works best for you will depend on where you’re sending money to, how quickly it needs to arrive and a range of other factors. Some common options include:

• Bank-to-bank transfers - if your own bank offers international transfers you may be able to have them deposit your payment directly with the recipient. Often sending money to another account held in the same bank has a lower fee than sending to another institution

• Post Office - you can send money to more or less any country in the world through the Post Office thanks to their partnership with Western Union. There are lots of different ways to pay, and your money can be collected in cash quickly by the recipient - transfer limits apply which you’ll need to check based on the destination country

• International money transfer companies - send money all over the world with an international money transfer company. Different companies have their own features and fees but you can often pay from your own bank or with a card, and have the money deposited in the recipient’s bank account

Documents needed when sending a large sum

Money transfer services and banks usually need to ask customers to provide some documents when sending high value transfers. This is to comply with global financial regulations and anti-money laundering laws. Generally you’ll need to prove your identity and also the source of the money you’re sending, to show it’s come from legal sources. You’ll usually find that whenever you’re asked to prove the source of the money you’re sending you’ll need to provide bank statements showing the money arriving in your account and then being transferred on to the payment provider. Other documents are likely to be needed, which can vary depending on the situation.

Here’s a look at the documents you may need, based on the source of the money you’re sending:

What qualifies as a large amount transfer in Australia?

There aren’t any legal transfer limits in Australia. This means that in theory, you can send as much money as you want overseas. However, the transfer provider you use may set a limit on how much you can send per day, month or year. Limits may also vary widely depending on your specific account type. For example, banks tend to have international transfer limits of around 50,000 AUD - and far lower in some cases. You may need to apply to the bank specifically to increase your sending limit if your online transfers are capped.

If you’re sending a larger amount you may be able to do so by visiting a branch in person, or you might have to send the money in more than one transfer.

Before you send a high value transfer you’ll need to check the limits that apply to make sure your payment will be possible. Limits may apply to the amount you can send in a single transfer, per day, per month or in a 180 day period. Some providers have different limits depending on how you pay, or depending on whether you’re arranging your transfer online or by phone for example. Here’s a roundup of the usual limits for some major Australian banks and providers.

Tax guidelines for large money transfers in Australia

It’s important to understand if there are any tax implications when you send a large value overseas payment. Whether or not you need to report the transfer or pay any tax will depend on the type of payment and where it’s going.

If a transfer of 10,000 AUD or more is received into an Australian bank, the bank has to report this to AUSTRAC. This doesn’t necessarily mean you need to pay any tax on it - the purpose of the payment and where the money has come from will determine this. If it’s income earned abroad which you’ve already paid tax on, and which you’re repatriating, for example, there may be no tax to pay. However, you’re advised by the ATO to retain all documentation relating to high value money transfers in case you’re asked to prove where the money came from.

As with most tax matters, it’s complicated. Getting individual tax advice is important to make sure you don’t fall foul of the law.

Which countries are popular for large money transfers?

Banks and money transfer services can support large value transfers to most countries around the world. Often people use high value transfers to send money to loved ones, invest or buy property overseas. Some of the most popular currency routes include:

• The US

• New Zealand

• Thailand

• Canada

• India

Dedicated customer support for large money transfers

When you send a high value payment overseas it’s crucial that you trust the provider you use, and know how to get help should you ever need it. Some providers, like Wise or OFX, have a dedicated team that deals with high value transfers and offer personalised support and guidance. You can call OFX 24 hours a day to talk through your payments, and you’ll be able to get support from Wise by phone, email or using the in-app chat function.

Conclusion - Large money transfers

Sending a high value transfer can be nerve wracking, but it doesn’t have to be. Using our tools can help you pick the right provider for your specific needs, looking at the fees and exchange rates available, as well as other crucial factors such as safety and customer feedback. Use this guide to make the process of sending a large amount transfer seamless, and get your money moving in no time.

How to send large sums of money overseas?

You can send large sums of money overseas with your bank or with a specialist digital provider. Specialist services can often provide lower overall costs compared to banks, as well as better exchange rates.

Is there a limit on bank transfers in Australia?

Banks may impose their own limits on transfers, which can be pretty low, particularly when sending money online. It’s sometimes possible to ask for a higher online limit, or to send more in a branch, although that may come with higher fees.

Is my information secure when sending money?

Banks and money transfer services must follow data protection laws and keep all of your personal and financial information safe. You’ll be able to view your preferred provider’s data protection policy online if you have concerns about how your data is held and handled.

What are the costs to send a large amount of money?

The costs for a large value transfer can vary a lot depending on the bank or provider you pick. You’ll need to review both the transfer fee and the exchange rate available to see the full cost - it’s common to find that transfer fees are low or even waived entirely, but an extra cost is added into the exchange rate instead. Choose a provider which uses the mid-market rate or as close to it as possible to keep the costs down.

Why was my large amount money transfer declined?

High value transfers may be delayed or declined if they go over the bank’s transfer limits, or if there’s a problem with checking your documents for verification. Double check the bank’s rules and ask for advice if you’re struggling with your payment.