Melbourne

1. Official Currency

The official currency of Melbourne, and all of Australia, is the Australian Dollar (AUD). It is abbreviated as $ or A$ to distinguish it from other dollar currencies. The currency is divided into 100 cents.

• Banknotes: $5, $10, $20, $50, and $100.
• Coins: 5 cents, 10 cents, 20 cents, 50 cents, $1, and $2.

Australia’s banknotes are made of polymer, making them durable and resistant to wear and tear. They also feature vibrant colors and advanced security features.

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2. Exchange Rates

Exchange rates fluctuate daily based on global currency markets. As of October 2023, here are approximate exchange rates for some major currencies:

• 1 USD ≈ 1.55 AUD
• 1 EUR ≈ 1.65 AUD
• 1 GBP ≈ 1.90 AUD
• 1 JPY ≈ 0.011 AUD

It’s always a good idea to check the current exchange rate before exchanging money. Websites like XE.com or apps like Wise can provide real-time rates.

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3. Where to Exchange Money

Melbourne offers several options for exchanging foreign currency. Here are the most common and reliable methods:

a. Banks

• Major banks like Commonwealth Bank, ANZ, Westpac, and NAB offer currency exchange services.
• Banks typically provide competitive rates but may charge a service fee.
• Bank branches are located throughout Melbourne, especially in the Central Business District (CBD).

b. Currency Exchange Services

• Specialized currency exchange providers like Travelex, Travel Money Oz, and City Forex are widely available in Melbourne.
• These services are often found in shopping centers, tourist areas, and the airport.
• Compare rates and fees before committing, as they can vary significantly.

c. Melbourne Airport

• Currency exchange counters are available at Melbourne Tullamarine Airport, but they often have less favorable rates and higher fees compared to city locations.
• It’s best to exchange only a small amount at the airport for immediate needs.

d. ATMs

• ATMs are a convenient way to withdraw Australian dollars directly using your debit or credit card.
• Look for ATMs operated by major banks to avoid excessive fees.
• Be aware of foreign transaction fees and currency conversion charges from your home bank.

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4. Typical Costs in Melbourne

Melbourne is one of Australia’s most vibrant and cosmopolitan cities, but it can also be relatively expensive. Here’s a breakdown of typical costs for basic expenses:

a. Food

• Casual meal at a café or food court: $15–$25
• Mid-range restaurant meal: $25–$50 per person
• Fast food combo meal: $10–$15
• Coffee: $4–$6
• Bottle of water (500ml): $2–$4

b. Transportation

• Myki card (public transport card): $6 (one-time purchase)
• Daily public transport fare (Zone 1): $10.00 (unlimited travel for the day)
• Single tram or train ride: $4.60 (2-hour fare)
• Taxi or rideshare (e.g., Uber): $10–$20 for short trips within the city.

c. Accommodation

• Budget hostel: $30–$50 per night
• Mid-range hotel: $150–$250 per night
• Luxury hotel: $300+ per night

d. Groceries

• Loaf of bread: $3–$4
• 1 liter of milk: $1.50–$2.50
• Dozen eggs: $4–$6
• Fruits and vegetables (per kg): $3–$8, depending on the item.

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5. Cashless Payments

Melbourne is a highly cashless-friendly city, and most transactions can be completed using cards or digital payment methods. Here’s what you need to know:

a. Credit and Debit Cards

• Visa, Mastercard, and American Express are widely accepted.
• Contactless payments (tap-and-go) are extremely popular and available almost everywhere, including public transport, restaurants, and retail stores.

b. Mobile Payments

• Digital wallets like Apple Pay, Google Pay, and Samsung Pay are commonly used and accepted at most establishments.

c. Public Transport

• Melbourne’s public transport system requires a Myki card, which can be topped up with cash or card. Alternatively, you can use contactless credit/debit cards or mobile wallets to tap on and off trams, trains, and buses.

d. Cash

• While cash is still accepted, it’s becoming less common, especially in urban areas. Many businesses prefer card payments, and some may even be cashless.

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6. Cultural Practices and Tips for Handling Money

Understanding local customs around money can help you feel more comfortable in Melbourne:

a. Tipping

• Tipping is not mandatory in Australia, as workers are paid a fair minimum wage.
• However, tipping is appreciated for exceptional service, especially in restaurants, where 10% of the bill is a common gesture.
• Rounding up taxi fares or leaving small change at cafés is also appreciated but not expected.

b. Bargaining

• Bargaining is not a common practice in Melbourne, except at some markets like the Queen Victoria Market, where you might negotiate for bulk purchases or fresh produce.

c. Splitting Bills

• It’s common for groups to split bills at restaurants, and many establishments offer separate billing options. However, it’s polite to confirm with the staff beforehand.

d. Small Change

• Coins are widely used, especially for small purchases like coffee or snacks. Keep some coins handy for vending machines, parking meters, or small transactions.

e. Tax (GST)

• Prices in Melbourne typically include a 10% Goods and Services Tax (GST), so the price you see is the price you pay.
• Tourists cannot claim GST refunds on general purchases, but you may be eligible for a refund on goods over $300 purchased within 60 days of departure under the Tourist Refund Scheme (TRS).

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7. Money-Saving Tips

• Use public transport: Melbourne’s trams in the CBD are free, so take advantage of this for short trips.
• Dine smart: Look for lunch specials or early-bird deals at restaurants.
• Shop at markets: Fresh produce and meals at markets like the Queen Victoria Market are often cheaper than supermarkets or restaurants.
• Avoid dynamic currency conversion: When paying by card, always choose to be charged in AUD rather than your home currency to avoid unfavorable exchange rates.

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By understanding the currency, costs, and cultural practices in Melbourne, you’ll be well-prepared to manage your finances and enjoy your time in this vibrant city. Let me know if you need further assistance!