Australia Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Australia.
How Australia Taxes Work
Australia's tax system: Worldwide income for tax residents; progressive rates 0–45%.
FEIE vs Foreign Tax Credit
FTC recommended — Australian rates often exceed FEIE savings. Totalization agreement covers superannuation.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Australia has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
Commonwealth Bank, Westpac, and ANZ accept US expats.
Visa Options
Skilled Independent visa, Business Innovation visa, or Working Holiday visa.
Cost of Living
High — $3,000–$5,000/month in Sydney/Melbourne.
Frequently Asked Questions
Do US expats in Australia need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FTC recommended — Australian rates often exceed FEIE savings. Totalization agreement covers superannuation.
What is the cost of living?
High — $3,000–$5,000/month in Sydney/Melbourne.
Compare FEIE vs FTC vs Combined strategies for Australia.
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