The name of the Sydney suburb was kept after Joseph Banks (a botanist) who sailed with Captain James Cook. In the 1850′s the land was once owned by brothers Simeon and James Pearce.
The development of the area took rapidly after the coming of railway station in 1906 whilst the post offices opened in August 1924.
Banksia is set up 12 kilometres south to the CBD under the government area of the City of Rockdale. The city of Rockdale is part of the St. George area.