BSB numbers identify bank branches in Australia. If you use the wrong number, your payment could bounce, or be sent to the wrong account. Always check the BSB number with your bank or recipient. The 3rd character is a number between 2 and 7, representing the state the bank branch is located in (4 represents Queensland, for example). With just an account number and BSB number, you can send money to and from Australia at the best possible exchange rate.
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The first digit differentiates account types (e.g., 0 for trading, 7 for savings), while the second digit is shared. Some large financial institutions may have two BSB codes per branch — one for trading/cheque accounts and one for savings accounts. The first two digits identify the banking institution, and the remaining four identify the specific branch.