Australia American Expat's Money Guide: Australia
Transfers, banking, and US + local taxes for Americans in Australia. Currency: AUD.
The quick answer
- US tax treaty
- Yes
- Totalization (SS) agreement
- Yes
- Special expat tax regime
- Temporary resident exemption
- Bank account as a US citizen
- Yes
Local top marginal income-tax rate (headline): 45%. Effective rates depend on income, residency status, and any special regime. Figures here are general and can change, so verify against current law before relying on them.
Informational only, not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links, and we may earn a commission at no extra cost to you. Full disclaimer.
Cost of living
A city-centre 1-bedroom in Australia runs about $2,543/mo
Compare cost of living between countries →
Approximate — Numbeo, as of 2026-06. Your real costs depend on city and lifestyle.
1 Moving your money (USD → AUD)
USD→AUD is a deep, highly liquid major corridor; bank wires bury a 1-3% FX spread, so a mid-market specialist is usually far cheaper for moving a relocation lump sum.
Our partner pick
Wise
The visible fee isn't the cost; the exchange-rate spread is. A specialist like Wise typically beats a bank wire on USD→AUD; compare your exact amount first.
Last checked 2026-06-04 · Affiliate link; we may earn a commission at no cost to you.
2 Banking as an American in Australia
The 'big four' (CBA, Westpac, ANZ, NAB) let you open an account online from overseas before you arrive, then verify ID (passport) in-branch within a set window after landing. As a US person you'll complete FATCA self-certification with your SSN/TIN. A Tax File Number (TFN) isn't required to open the account, but without one the bank withholds tax on interest at the top rate.
Local banks generally accept US persons under the FATCA agreement, though some are cautious about the extra reporting.
3 Taxes: the part everyone gets wrong
The US side: you still file
- FEIE / FTCYou file a US return on worldwide income. FEIE or the Foreign Tax Credit usually prevents true double taxation; which one wins depends on your income and local rates.
- $10,000FBAR (FinCEN 114) if your foreign accounts top $10,000 combined at any point in the year.
- Form 8938FATCA reporting may also apply above higher thresholds.
The Australia side
Australia offers a special regime, Temporary resident exemption. Australia has NO inbound 'impatriate' tax break for permanent residents or citizens. It does have a temporary-resident exemption: people who hold a temporary visa under the Migration Act 1958 are generally exempt from Australian tax on most FOREIGN income and gains, even while Australian tax residents. This applies ONLY to temporary visa holders; it ends the moment you become a permanent resident or citizen, after which you're taxed on worldwide income. The 45% top marginal rate applies above AUD 190,000 and the 2% Medicare levy is charged on top (effective top ~47%). Verify your visa class qualifies before relying on it.
Where this gets people
- Superannuation is a US tax minefield: the US-Australia treaty doesn't clearly protect it, so the IRS may treat your super (especially SMSFs or funds with large voluntary contributions) as a foreign grantor trust, triggering US tax on growth plus Forms 3520, 3520-A and 8621. This is the single biggest issue for Americans in Australia.
- Australian managed funds and ETFs are PFICs to the IRS: punitive tax and a Form 8621 per fund. Favor US-domiciled investments where you can.
- The 1 July to 30 June Australian tax year mismatches the US calendar year, complicating foreign-tax-credit timing; and Australian Medicare has no US reciprocal agreement, so it won't cover you back in the States.
- A "special regime" headline rate is not your effective rate: eligibility and exclusions matter a lot.
- State taxes can follow you abroad depending on the US state you left, so don't assume you're done with them.
Our partner pick
Greenback Expat Tax Services
Cross-border tax is fact-specific and the penalties are real. A US-expat tax specialist handles FEIE/FTC, FBAR, and FATCA correctly.
Last checked 2026-06-04 · Affiliate link; we may earn a commission at no cost to you.
4 Investing & brokerage
US brokers sometimes drop customers with a non-US address. A broker that explicitly supports non-resident Americans is the standard fallback. Beware buying local (non-US) funds: PFIC (Passive Foreign Investment Company) rules make them a US tax nightmare.
Our partner pick
Interactive Brokers
Interactive Brokers explicitly supports non-resident Americans, so a Australia address won't get your account closed, and US-domiciled funds keep you clear of PFIC.
Last checked 2026-06-04 · Affiliate link; we may earn a commission at no cost to you.
5 Healthcare & insurance
Legal residents generally gain access to Australia's public health system, but there's usually a gap before residency and coverage kick in. Many new arrivals and nomads bridge the gap with international coverage.
Our partner pick
SafetyWing
Covers the gap between arrival and public-system enrollment. Month-to-month, designed for nomads and new arrivals.
Last checked 2026-06-04 · Affiliate link; we may earn a commission at no cost to you.
6 Common residency routes
Skilled visas (points-tested / employer-sponsored)
Working Holiday visa (subclass 417/462)
Partner/spouse visa
Your residency route determines your tax residency and bank access; they're connected.
Keep planning
Cheapest way to send USD → AUD
Corridor breakdown for Australia, fee by fee.
Wise vs. OFX
Which specialist wins for your transfer size.
Open a bank account abroad as a US citizen
Guide
FBAR & FATCA, explained
Guide
FEIE vs. the Foreign Tax Credit
Guide
All 16 country guides
Compare destinations side by side.
Considering somewhere else? Canada · Costa Rica · France
Frequently asked questions
Do Americans living in Australia still have to file US taxes?
Yes. US citizens file with the IRS on worldwide income no matter where they live. The US-Australia tax treaty and tools like the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit usually prevent true double taxation, but you still must file. This is general information, not tax advice.
Do I need to file an FBAR if I move to Australia?
If your foreign financial accounts add up to more than $10,000 at any point in the year, you generally must file an FBAR (FinCEN Form 114). Many expats also have FATCA (Form 8938) obligations. Penalties for missing these are steep, so confirm your situation with a cross-border professional.
What's the cheapest way to move money to Australia?
For a relocation lump sum, the cost is almost entirely the exchange-rate spread, not the visible fee. Banks commonly bury 1-3% in the rate. Compare your specific amount with the transfer cost tool before sending.
Can I keep my US brokerage account after moving to Australia?
Some US brokers restrict or close accounts once you have a non-US address. A broker that explicitly supports non-resident Americans is the common fallback. Don't change your address until you've confirmed your broker's policy.
What is the Temporary resident exemption regime in Australia?
Australia has NO inbound 'impatriate' tax break for permanent residents or citizens. It does have a temporary-resident exemption: people who hold a temporary visa under the Migration Act 1958 are generally exempt from Australian tax on most FOREIGN income and gains, even while Australian tax residents. This applies ONLY to temporary visa holders; it ends the moment you become a permanent resident or citizen, after which you're taxed on worldwide income. The 45% top marginal rate applies above AUD 190,000 and the 2% Medicare levy is charged on top (effective top ~47%). Verify your visa class qualifies before relying on it. Eligibility and exclusions matter: a regime's headline rate is not your effective rate, so confirm against current law before relying on it.
Can I open a local bank account in Australia as an American?
Yes, non-residents can generally open a local account in Australia. Banks broadly accept US persons under the FATCA agreement, though expect extra paperwork. A multi-currency account covers the gap while you get set up.
Data last verified 2026-06-04. Primary source: irs.gov.