For US citizens and green card holders in Australia

US Taxes for Americans Living in Australia

US citizens and green card holders who live in Australia still file a US return every year, report Australian accounts, and choose how to avoid double tax. This guide covers the treaty, social security, FBAR and catching up on missed years.

US returnFBARForm 8938Treaty: yesTotalization: yes

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Quick answer

Do US citizens living in Australia have to file US taxes?

Yes. The US taxes citizens and green card holders on worldwide income wherever they live. Living in Australia gives an automatic extension to June 15, accounts there above US$10,000 in total need an FBAR, and the foreign tax credit or the foreign earned income exclusion (US$132,900 for 2026) usually prevents double tax. The US has an income tax treaty with Australia, and a social security agreement has been in force since October 1, 2002.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

Yearly US return: Yes, on worldwide income; due June 15 automatically when living abroad
US tax treaty with Australia: Yes, per the IRS list (saving clause applies to US citizens)
Social security agreement: Yes, in force since October 1, 2002
Accounts in Australia: FBAR above US$10,000 in total; Form 8938 above higher limits
Behind on filing: Streamlined: 3 years of returns, 6 years of FBARs

US filing duty for Americans in Australia

A US passport or green card keeps you in the US tax system after a move to Australia. The IRS expects a return covering income from everywhere, including your Australian salary or business income, in US dollars (IRS Pub 54).

Timing is a little kinder abroad: if you live and work outside the US on April 15, the filing date moves automatically to June 15, and an extension request takes it to October 15. Tax paid after April 15 still carries interest, so a payment estimate is worth making early.

Is there a US tax treaty with Australia?

The US has an income tax treaty with Australia (IRS treaty list), but US treaties contain a saving clause: they generally do not reduce US tax for US citizens, with specific exceptions written into each treaty (IRS Pub 54). So the treaty helps at the edges, for example with pensions or the order of tax credits, while the main relief comes from the exclusion or the credit.

Tool	What it does	Watch for
Foreign earned income exclusion	Excludes up to US$130,000 (2025) or US$132,900 (2026) of foreign earned income	Only earned income; does not reduce self-employment tax (Pub 54)
Foreign tax credit	Credits income tax paid in Australia against US tax on the same income	Works best where the local tax is at least as high as the US tax

We run the figures both ways before choosing. More in FEIE vs foreign tax credit.

Your accounts in Australia: FBAR and Form 8938

Bank, pension and investment accounts in Australia are foreign accounts for US purposes.

FBAR: required when your foreign accounts total more than US$10,000 at any time in the year. Due April 15, with an automatic extension to October 15 (IRS).
Form 8938: filed with the return when foreign financial assets pass higher thresholds; for a single person living abroad, more than US$200,000 at year end or US$300,000 at any time (US$400,000 and US$600,000 for a joint return). Not filing can cost US$10,000 (IRS).

Missed years while living in Australia

Behind on US filings while living in Australia? Eligible non-willful filers who live abroad can use the Streamlined Foreign Offshore Procedures: file the last 3 years of returns and 6 years of FBARs, pay any tax and interest, and the IRS does not charge the usual failure-to-file, information return or FBAR penalties (IRS). More in our Streamlined guide.

Working with your adviser in Australia

Americans in Australia often have superannuation accounts, Australian shares or managed funds, and sometimes an Australian company.

We do not advise on the tax law of Australia. A local adviser handles your return there; we prepare the US return and filings and use the tax you paid in Australia for the credit.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares and signs US returns for Americans living in Australia: the yearly return with the exclusion or credit, FBAR and Form 8938, and Streamlined catch-up. Every engagement starts with a fixed written quote after we review the file. See the yearly filing package.

Sources: treaty articles and US law

Treaty and social security

The IRS lists the 1982 income tax treaty, amended by a 2001 protocol. General effective date (IRS Table 3): treaty Dec. 1, 1983; protocol Jan. 1, 2004 (IRS treaty documents for Australia; treaty text; IRS Table 3).
Saving clause: Article 1 (Personal Scope), which lets the United States tax its citizens as if the treaty had not come into effect, apart from listed exceptions.
Article 22 (Relief from Double Taxation), on relief from double taxation.
Article 18 (Pensions, Annuities, Alimony and Child Support), on pensions and social security.
Article 15 (Dependent Personal Services), on employment income.
Social security: the US agreement with Australia entered into force on October 1, 2002 (SSA).

US law

Foreign tax credit: Code section 901 (IRS Pub 54).
Form 8938: Code section 6038D and Treas. Reg. section 1.6038D (IRS Form 8938 instructions).
FBAR: 31 USC 5314 and 31 CFR 1010.350 (IRS Internal Revenue Manual 4.26.16).
Green card holders and residency: Code section 7701(b) (IRS Pub 519).
Foreign earned income exclusion: Code section 911 (IRS Form 2555 instructions).

The tax rules of Australia also apply to you there; a local adviser covers that side.

Common questions

I moved to Australia. Do I still file a US return?

Yes. US citizens and green card holders file a US return on worldwide income wherever they live. Living in Australia on April 15 gives an automatic extension to June 15, and tax paid in Australia or the foreign earned income exclusion often reduces the US tax to little or nothing.

Does the US-Australia tax treaty stop double taxation?

Partly. The treaty exists, but its saving clause lets the US tax its own citizens as if there were no treaty, with listed exceptions. The main relief is the foreign tax credit or the foreign earned income exclusion.

Do I pay social security in both the US and Australia?

Generally not. The US-Australia social security agreement, in force since October 1, 2002, assigns your work to one system.

What if I never filed US taxes while living in Australia?

If it was not willful, the Streamlined Foreign Offshore Procedures let you file 3 years of returns and 6 years of FBARs, and eligible people living abroad do not pay the usual failure-to-file, information return or FBAR penalties.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

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