Do I legally need a separate bank account as a sole trader?

No. Australian sole traders are not legally required to have a separate business bank account — you and your business are the same legal entity. But almost every accountant recommends one anyway because mixing personal and business transactions makes BAS, tax returns, and any future ATO audit dramatically more painful. See our deeper guide for the full reasoning.

Up vs Macquarie — which one wins for AU sole traders?

Both are excellent and very similar on price ($0). Up wins on app UX and the Saver Spaces feature for bucketing GST/tax. Macquarie wins on free international card use and a more mature brand. Most freelancers we hear from pick Up first and add Wise for any international billing.

Why isn't Commonwealth Bank / Westpac / NAB on this list?

Their everyday accounts charge monthly fees ($5–$15/mo) and their dedicated business accounts target larger turnover. For a typical AU sole trader, the no-fee challenger accounts (Up, Macquarie, ANZ Plus) and Hnry-as-an-account cover the same need without the fees. We may add the big-4 business accounts in a future revision for context.

How do I bucket GST and tax automatically?

On Up: create two Saver Spaces (one for GST, one for tax), then set up Rules to auto-move 1/11th of every incoming payment to GST and your tax % (see our 'How much tax to save' guide) to the tax Space. On Macquarie / ANZ Plus: same concept with their savings accounts + automatic transfers. On Hnry: you don't need to — it's done for you on every invoice.

Can I use Wise as my main account?

Not really. Wise is designed as a payments + multi-currency account, not an everyday Australian bank account. You won't get an ABA number that AU PayID systems recognise the same way. Use Wise for international invoicing, but keep an AU everyday account for everything else.

Comparison

Best bank accounts for Australian sole traders (2026)

The legal answer is you don't need a separate account. The practical answer is everyone does. Here are the five accounts AU sole traders actually use — Up, Macquarie, Wise, ANZ Plus, Hnry — with fees, app UX, GST bucketing, and a clear verdict per use case.

In this comparison

Quick verdict by sole-trader persona (4 use cases).
5-row comparison table: fee, bucketing, international, app.
Detailed pros and cons for each account.
FAQ on GST/tax bucketing workflows.

Jump to verdict ↓

Last updated

30 April 2026

Format

Comparison + verdict

Accounts compared

5 AU-relevant options

Quick verdict

Which one fits how you actually work?

Skip the table if your persona is obvious — jump straight to the account whose 'best for' line matches yours.

Best overall everyday account

Sole trader who wants a no-fee everyday account with great Saver Spaces for GST/tax bucketing and a polished app.

Up BankVisit →

Recommended

Best big-bank-grade with modern UX

Sole trader who wants ANZ-level reliability + Saturday phone support, but with a modern app and no fees.

ANZ PlusVisit →

Recommended

Best for international invoicing

Sole trader who bills any non-AU clients (US, UK, EU) and needs local account details + mid-market FX.

Wise (formerly TransferWise)Visit →

Recommended

Best all-in-one tax-routed account

Sole trader who wants tax/GST/super automatically deducted from every invoice — no separate bucketing needed.

HnryVisit →

Affiliate link

Comparison

Side-by-side

Fees and features accurate as of the last update date. Providers change product terms — confirm before opening an account.

Account	Monthly fee	GST/tax bucketing	International billing	App quality	Best for
Up Bank	$0 / no minimum	Excellent — unlimited Saver Spaces	OK — pay-anyone in AUD; weaker FX	Class-leading iOS / Android	Most solo operators
Macquarie Transaction Account	$0 / no minimum	Good — savings accounts + auto-rules	Strong — free international card	Mature, less playful than Up	Sole traders who want a 'normal' bank vibe
Wise (formerly TransferWise)	$0 ongoing; ~$28 one-off for account details	Limited — primarily a payment account	Best in class — local USD/GBP/EUR details	Strong for FX, not your everyday account	Anyone billing non-AU clients
ANZ Plus	$0	Good — Save accounts inside the app	Standard ANZ international transfer fees	Modern; built newer than the legacy ANZ app	Big-4 reliability without big-4 friction
Hnry	1% of income, capped at $1,500 +GST/yr	Automatic — Hnry deducts tax/GST/super every payment	Yes — Hnry handles AUD + some FX	Functional; primary purpose is tax service	Solo operators who want zero tax admin

Detailed reviews

Each account, in detail

Pros, cons, and the honest 'best for' line for each — written from a working sole trader's perspective.

Up Bank

Fee-free everyday banking with great Saver Spaces

Best for: The most-loved everyday account by Australian sole traders — phone-first, free, and the Saver Spaces literally automate the GST + tax bucketing workflow most accountants recommend.

Visit Up Bank →

Pros

+ $0 monthly fee, no minimum balance, no transaction caps.
+ Saver Spaces let you bucket money for GST, tax, super, and savings — visible in the same app.
+ Class-leading mobile UX — payments + notifications feel instant.
+ Round-Ups + automatic rules can move a % of every incoming payment into a Saver Space (perfect for GST set-aside).

Cons

– Joint accounts only with another Up customer (not useful for sole traders, but a limitation).
– International card use has FX margin — Wise wins on overseas spending.
– Customer support is chat-only; no phone line.

Recommendation only — no affiliate relationship currently configured for this partner.

ANZ Plus

Big-4 backing with modern app + savings buckets

Best for: ANZ's modern everyday account — built newer than the legacy ANZ infrastructure but backed by the same big-4 stability and physical branch network.

Visit ANZ Plus →

Pros

+ $0 monthly fee, polished modern app.
+ Save accounts inside the same app for GST/tax bucketing.
+ Phone + branch support included — useful when something goes wrong with a payment.
+ Real-time fraud monitoring + budgeting tools built in.

Cons

– International transfers attract standard ANZ FX margin.
– Newer product — fewer integrations than the long-running fintech accounts.
– Mobile-first; some advanced features still route through the legacy ANZ web banking.

Recommendation only — no affiliate relationship currently configured for this partner.

Macquarie Transaction Account

No-fee everyday account with mature app + interest

Best for: The grown-up alternative to Up — same no-fee structure, similar slick app, but with a more mature brand voice and free international card use.

Visit Macquarie Transaction Account →

Pros

+ $0 monthly fee, no minimum.
+ Free international card use (no FX margin on Visa transactions).
+ Interest paid on transaction account balances.
+ Strong AU support team + branch network.

Cons

– Bucketing UX less playful than Up's Saver Spaces.
– Account opening can be slower than fintech challengers.
– Some advanced business features need separate Macquarie business products.

Recommendation only — no affiliate relationship currently configured for this partner.

Wise (formerly TransferWise)

Multi-currency for AU freelancers billing overseas

Best for: Not your everyday account — your international invoicing account. If you bill any non-AU clients, Wise pays for itself in the first invoice.

Visit Wise (formerly TransferWise) →

Pros

+ Local AU, USD, EUR, GBP account details — international clients pay you as a local bank transfer (no SWIFT fees).
+ Mid-market FX rates (typically 5-15× cheaper than big-bank FX).
+ Multi-currency wallet — hold USD/EUR/GBP until rates favour conversion to AUD.
+ Card included; spend in 50+ currencies with no foreign-transaction fee.

Cons

– Not designed as an everyday account — you still need Up / Macquarie / ANZ for normal AU spending.
– One-off ~$28 fee to open the account details.
– Not a deposit-protected account in the way an Australian ADI is.

Recommendation only — no affiliate relationship currently configured for this partner.

Hnry

Sole trader tax + invoicing on autopilot

Best for: More than a bank account — Hnry routes your customer payments through their system and auto-deducts your income tax, GST, and super. The bank account itself is incidental to the tax automation.

Visit Hnry →

Pros

+ Every customer payment is auto-split: income tax + GST + super + your take-home.
+ BAS and income tax return lodged for you, included in the 1% fee.
+ No quarterly tax surprise — your take-home is already net of tax.
+ Works as your operating account; you don't need a separate bank for everyday spending unless you want to.

Cons

– 1% of income (capped $1,500/yr) is more than $0 fees from Up / Macquarie if you're earning $60k+.
– You hand control of tax deductions to Hnry's logic; less flexibility than a manual return.
– Only useful if you want the full tax service — using Hnry as just a bank account doesn't make sense.

BizTools.au may earn a commission if you open an account via this link — terms are unaffected.

FAQ

Common questions

Do I legally need a separate bank account as a sole trader?: No. Australian sole traders are not legally required to have a separate business bank account — you and your business are the same legal entity. But almost every accountant recommends one anyway because mixing personal and business transactions makes BAS, tax returns, and any future ATO audit dramatically more painful. See our deeper guide for the full reasoning.
Up vs Macquarie — which one wins for AU sole traders?: Both are excellent and very similar on price ($0). Up wins on app UX and the Saver Spaces feature for bucketing GST/tax. Macquarie wins on free international card use and a more mature brand. Most freelancers we hear from pick Up first and add Wise for any international billing.
Why isn't Commonwealth Bank / Westpac / NAB on this list?: Their everyday accounts charge monthly fees ($5–$15/mo) and their dedicated business accounts target larger turnover. For a typical AU sole trader, the no-fee challenger accounts (Up, Macquarie, ANZ Plus) and Hnry-as-an-account cover the same need without the fees. We may add the big-4 business accounts in a future revision for context.
How do I bucket GST and tax automatically?: On Up: create two Saver Spaces (one for GST, one for tax), then set up Rules to auto-move 1/11th of every incoming payment to GST and your tax % (see our 'How much tax to save' guide) to the tax Space. On Macquarie / ANZ Plus: same concept with their savings accounts + automatic transfers. On Hnry: you don't need to — it's done for you on every invoice.
Can I use Wise as my main account?: Not really. Wise is designed as a payments + multi-currency account, not an everyday Australian bank account. You won't get an ABA number that AU PayID systems recognise the same way. Use Wise for international invoicing, but keep an AU everyday account for everything else.

Make the most of whichever account you pick

Guide

Do I need a separate sole trader bank account?

The legal vs practical answer, plus the 3-bucket workflow most sole traders end up with.

Read →

Guide

How much tax to save as a sole trader

Rules of thumb per income bracket — use these for your tax Saver Space setup.

Read →

Calculator

BAS Set-Aside Calculator

Work out the exact GST to ring-fence from every invoice before BAS day.

Read →

Disclosure + disclaimer

How this comparison was put together

Some of the links above are affiliate links. If you click through and open an account, BizTools.au may earn a small commission. The commission does not change the terms you get and does not influence which account wins per use case.

We focused on the five accounts working AU sole traders pick between most often. We excluded big-4 dedicated business transaction accounts because their monthly fees ($5–$15/mo) are rarely worth it for a sole trader operating at typical solo volumes.

Important note

BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.

Calculator results are general estimates only and depend on the figures entered.
Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.

Read the full site disclaimer