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US Expat Tax Australia: Your Complete Guide

Navigating us expat tax Australia can be complex. Learn about taxes in Australia, filing obligations for US expats in Australia, and how to avoid double taxation while ensuring compliance with both countries.

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U.S. Expat Tax Deadline

15th June

Expat Tax Deadline

For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.

Australia

Understanding Taxes for US Expats in Australia

A US citizen living in Australia must comply with Australian tax laws while fulfilling their US tax obligations. Understanding expat tax services Australia ensures compliance, prevents double taxation, and optimizes tax benefits.

Tax Requirements

Tax Residency in Australia

Expats staying 183+ days per year are tax residents and pay tax on worldwide income.

Income Tax in Australia for Foreigners

Progressive tax rates up to 45% for residents. Non-residents pay 32.5%+ on Australian income.

Capital Gains Tax

Residents pay CGT at marginal tax rates; non-residents taxed up to 45% on capital gains.

Goods & Services Tax (GST)

10% GST applies to most goods and services.

US Federal Tax Return (Form 1040)

US expats in Australia must file with the IRS, reporting worldwide income.

Foreign Earned Income Exclusion (FEIE)

Allows exclusion of up to $120,000 in foreign income if qualified.

Foreign Tax Credit (FTC)

Offsets Australian taxes paid against US tax liability.

US-Australia Tax Treaty

Prevents double taxation and defines tax treatment between the two countries.

Superannuation & US Taxes

Australian superannuation funds are not tax-deferred under US tax laws and require reporting.

Key Tax Insights

Tax Facts for US Expats in Australia

US expats in Australia must understand tax in Australia for foreigners and ensure compliance with both US and Australian tax laws.

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Tax Residency Rules

You must be living in Australia as an American for 183+ days to become tax residents and you must report global income.

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Double Taxation Avoidance

The US-Australia tax treaty allows Foreign Tax Credit (FTC) or Foreign Earned Income Exclusion (FEIE) to reduce US tax liability.

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Superannuation & US Taxation

US expats in Australia must report superannuation accounts, as they are not tax-exempt under US tax law.

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    FAQs

    We Have All Your Queries Covered

    Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.

    Do US expats in Australia pay taxes in both countries?

    Yes, but they can claim Foreign Tax Credit (FTC) or Foreign Earned Income Exclusion (FEIE) to avoid double taxation.

    Residents pay up to 45% in income tax, while non-residents face a flat 32.5% tax on Australian income.

    Yes, the US-Australia tax treaty helps prevent double taxation and clarifies tax obligations.

    Yes, superannuation accounts are not tax-deferred under US tax law and must be reported to the IRS.

    Yes, US Social Security benefits are taxable under Australian tax law, but treaty benefits may apply.

    Yes, if American expats in Australia have foreign bank accounts exceeding $10,000, they must file an FBAR (FinCEN Form 114).

    Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.

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