An Authorised Deposit Taking Institution is a bank or credit union that the Australian Prudential Regulation Authority (APRA) has licensed to hold customer deposits and offer banking services

When you set up direct deposit, your employer or the organisation sending you money needs to know your bank details. That bank must be an Authorised Deposit Taking Institution (ADTI) — otherwise the payment cannot go through. ADTIs are the only financial institutions in Australia legally permitted to accept deposits from the public and offer transaction accounts. If you try to direct deposit into an unlicensed money service or a non-bank financial company, the transfer will fail or be rejected by your employer's payroll system.

The APRA maintains a public register of all ADTIs. This register is the definitive list of which institutions can receive direct deposits. Most readers will already bank with an ADTI without knowing the term — the major banks (Commonwealth Bank, Westpac, ANZ, NAB), most regional banks, and credit unions all hold ADTI licences. The distinction matters because it determines whether your direct deposit will work at all.

Key Takeaways

  • Only Authorised Deposit Taking Institutions can receive direct deposits; if your bank is not on the APRA register, your employer's payment will be rejected.
  • All major Australian banks and most credit unions are ADTIs, so most people already bank with one without needing to check.
  • If you use a non-bank financial service or money transfer company, you cannot use direct deposit — you will need an alternative payment method.
  • You can search the APRA register online to confirm your bank holds an ADTI licence before giving your details to your employer.

Which institutions hold ADTI licences

The four major Australian banks — Commonwealth Bank, Westpac, ANZ, and NAB — all hold ADTI licences. So do most regional and mutual banks, including Bendigo Bank, Bank of Queensland, and Macquarie Bank. Credit unions across Australia hold ADTI licences, though the specific institutions vary by state and region. If you have a transaction account (a regular everyday account for deposits and withdrawals), you almost certainly bank with an ADTI.

Non-bank financial companies, money transfer services, and digital wallet providers do not hold ADTI licences. PayPal, Wise, Revolut, and similar services cannot receive direct deposits from Australian employers. If your only account is with one of these services, you will need to open a transaction account with an ADTI to receive direct deposit payments. Some employers offer alternative payment methods — such as cheque or cash — if you cannot provide ADTI bank details, but direct deposit is the standard.

How to check if your bank is an ADTI

The APRA publishes a searchable register of all Authorised Deposit Taking Institutions on its website. You can search by the name of your bank or financial institution. The register shows the institution's licence type, the date the licence was granted, and whether it is currently active. If your bank appears on this register, it holds an ADTI licence and can receive direct deposits.

You do not need to do this check for most common banks — the major banks and credit unions are all licensed. The check is useful if you bank with a smaller or newer institution, or if you are unsure whether a service you use counts as a bank. If your institution does not appear on the APRA register, it cannot receive direct deposits, and you will need to open an account elsewhere.

What you need to give your employer for direct deposit

To set up direct deposit, your employer needs your account details from an ADTI. This typically includes your account name (as it appears on the account), account number, and BSB (Bank State Branch) number. Some employers also ask for the bank's name. All of this information comes from your ADTI account statement or online banking portal.

Your employer will use these details to send your pay directly into your account on payday. The payment goes through the Australian Payments Clearing Association (APCA) system, which only processes transfers to ADTI accounts. If you provide details from a non-ADTI service, the payment will fail and your employer will be notified that the account does not exist or cannot receive deposits.

What happens if your bank is not an ADTI

If you try to set up direct deposit with a non-ADTI financial service, your employer's payroll system will reject the account details. The payment cannot be processed because the APCA system does not route transfers to unlicensed institutions. Your employer will usually contact you to ask for alternative bank details or offer a different payment method.

If you do not have an ADTI account, you have two options: open a transaction account with an ADTI (which takes a few days to a week), or ask your employer whether they offer alternative payment methods such as cheque, cash, or a paycard. Most employers strongly prefer direct deposit because it is faster and more reliable, so opening an ADTI account is usually the quickest solution.

ADTI licences and deposit protection

One reason APRA licenses ADTIs is to protect customer deposits. All ADTIs are required to participate in the Financial Claims Scheme (FCS), which protects deposits up to a set limit if the institution fails. This protection applies to transaction accounts, savings accounts, and term deposits held with any ADTI. Non-bank financial services do not offer this protection.

This is another reason why direct deposit requires an ADTI account. Your employer's payment goes into an account that is legally protected if something goes wrong with the bank. If you use a non-ADTI service, your money sits outside this protection framework.

Frequently Asked Questions

Can I receive direct deposit into a PayPal or Wise account?

No. PayPal, Wise, Revolut, and similar services are not Authorised Deposit Taking Institutions and cannot receive direct deposits from Australian employers. You will need to open a transaction account with an ADTI — such as a bank or credit union — to receive direct deposit payments.

Do I need to check the APRA register before giving my bank details to my employer?

Only if you bank with a smaller or newer institution. All major banks and credit unions are ADTIs. If you are unsure, you can search the APRA register online. If your bank does not appear, you will need to open an account elsewhere.

What if my employer rejects my bank details?

The most common reason is that your bank is not an ADTI. Check the APRA register. If your bank is not listed, open a transaction account with an ADTI. If your bank is listed, contact your employer — there may be a typo in your account number or BSB.

How long does it take to open an ADTI account?

Most banks and credit unions can open a transaction account within a few days to a week. You will need proof of identity and proof of address. Once the account is open, you can give your employer your new bank details and set up direct deposit immediately.

Will my direct deposit be protected if the bank fails?

Yes. All ADTIs must participate in the Financial Claims Scheme, which protects deposits up to a set limit. Your direct deposit payments are protected under this scheme as soon as they arrive in your ADTI account.