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US Expats in Australia

Being a US Citizen or Green Card holder in Australia means there are several tax requirements to stay compliant in the US.

Meet our specialist accountants for US expats in Australia

Andrew-Landin

Andrew Landin

Tax Lawyer
Founder & CEO
22 years Experience

30-minutes US$497.

seth-hertz

Seth Hertz

Enrolled Agent
Tax Director
34 years of Expat Tax Experience

30-minutes US$437.

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Nick Wee

Enrolled Agent
Tax Director
18 years of Expat Tax Experience

30-minutes US$437.

Jonathan-Rose-EA

Jonathan Rose

Senior Tax Manager
18 years of Expat Tax Experience

30-minutes US$347.

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Johenzon Febb Borje

Tax Manager
11 years of Expat Tax Experience

30-minutes US$247.

Depending on the chosen tax contact, the price may increase.

American expat taxes in Australia overview

American Population

There are over 90,000 US expats residing in Australia.

Tax Treaty

The United States and Australia do have a tax treaty that helps prevent double taxation between the two countries.

Totalization Agreement

The US and Australia have a Totalization Agreement, which is called the Social Security Agreement.

Do I have to file?

US citizens have to file a US tax return even if they live in Australia.

Tax Deductions

Americans can claim the Foreign Earned Income Exclusion, Foreign Tax Credit, and Foreign Housing Exclusion to reduce their tax liability.

Foreign Housing Exclusion Amount

The maximum claim for Sydney, Australia  is $47,300.

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US Expats in Australia

Living in Australia can make your tax filing requirements quite complicated and to make sure you pay the absolute minimum it’s critical that your accountant understands every aspect and avenue to deliver the lowest tax liability possible.

How does the Australian/US tax treaty benefit taxpayers?

  • Eliminating Double Taxation: It provides mechanisms to allocate taxing rights between the two countries, ensuring that income is taxed efficiently.
  • Saving Clause: The treaty allows the US to tax its citizens as if the treaty did not exist, which means US domestic tax laws still apply.
  • Totalization Agreement: This aspect of the treaty helps avoid dual social security taxation, ensuring that self-employed individuals do not pay into both US Social Security and Australian superannuation systems

Read the full blog here.

What challenges do US expats face with Australian superannuation?

The primary challenge for US expats in Australia regarding superannuation is the IRS’s classification of these funds. 

Unlike the 401(k) or similar US-qualified retirement plans, superannuations do not have a direct counterpart in US law, which complicates how they are treated for tax purposes. This can affect:

  • The taxability of employer contributions which may be seen as taxable income by the IRS.
  • Reporting requirements on FBAR and Form 8938, depending on the total value of your foreign financial assets.
  • Potential complex tax requirements if employee contributions exceed those made by the employer.

Read the full blog about superannuation.