US filing basics for Americans in Australia
Living in Australia does not terminate your U.S. federal income tax obligations. U.S. citizens, green-card holders, and certain long-term residents are taxed on worldwide income on a citizenship or residency basis, regardless of where the income is earned or where you reside. You generally must file Form 1040 (or 1040-SR) when gross income exceeds the annual IRS filing threshold, typically $15,000 to $30,000 or more depending on filing status, age, and dependency for recent tax years (exact amounts published in IRS Rev. Proc. documents and inflation-adjusted). Even if no tax is ultimately due after credits and exclusions, filing is usually required to claim benefits such as the Foreign Earned Income Exclusion (FEIE) under IRC §911 (up to $130,000 for tax year 2025 per IRS Rev. Proc. 2024-40) or the Foreign Tax Credit (FTC) for taxes paid to Australia authorities.
US tax treaty with Australia
The United States has an income tax treaty with Australia for many common issues, treaty articles must be applied to your facts.
Local considerations in Australia
Superannuation and franking credits are frequent US reporting discussion points. Australian superannuation is generally treated as a foreign trust or pension plan by the IRS (not a qualified US retirement plan), making contributions, earnings, and distributions reportable. Super counts toward FBAR $10k threshold and often Form 8938. The US-Australia treaty (from 1982) does not fully address modern super, so US tax may apply; franking credits on Australian dividends typically do not generate a US foreign tax credit. Totalization agreement helps with social security. Many expats underestimate FBAR because bank + super + investments easily exceed the aggregate.
Common services needed by expats in Australia
Most Americans abroad in Australia need help with at least one of the following core compliance areas, which frequently interact:
- US expat tax returns, Form 1040 with FEIE, FTC, treaty positions, and any required state returns.
- FBAR reporting, FinCEN Form 114 for foreign financial accounts exceeding $10,000 aggregate at any time during the year.
- Form 8938 (FATCA), IRS disclosure of specified foreign financial assets when thresholds are met.
- Streamlined catch-up filing, For eligible non-willful taxpayers with prior unfiled years.