How many Americans live in Australia?

As at June 30, 2025, Australia had an estimated 122,030 residents who were born in the United States, according to ABS data released in April 2026.

This is the best official estimate available, but it is not the same as the number of US citizens living in Australia. It includes US-born residents regardless of their current citizenship and excludes US citizens who were born elsewhere.

Last updated August 19, 2026
Written by: Clark Stott

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In this article

What do US expats need to know about the Australian tax system?

Australia has a progressive income tax system administered by the Australian Taxation Office (ATO). While the Australian and US tax systems share some similarities, there are also important differences that can affect American expats.

Australia vs US tax system at a glance

Topic	Australia	United States
Tax year	1 July – 30 June	1 January – 31 December
Tax authority	Australian Taxation Office (ATO)	Internal Revenue Service (IRS)
Worldwide taxation	Australian tax residents	US citizens and Green Card holders

Note: Exceptions can apply.

For example, Australian temporary residents are generally exempt from tax on most foreign income, while US resident aliens can include Green Card holders and people who meet the substantial presence test.

Why do Americans move to Australia?

Many Americans move to Australia for career opportunities, education, or lifestyle changes.

Australia has a strong economy, offering jobs in industries like technology, healthcare, education, and professional services. Its universities continue to attract international students, and many Americans relocate to join family members or partners.

The country offers several Australian visa options, including skilled worker visas, student visas, and family-sponsored visas.

Where do most Americans live in Australia?

Many Americans choose to live in Australia’s major cities, although some prefer regional areas for lifestyle or affordability.

According to the 2021 Census, the largest US-born populations were in:

Greater Sydney: 25,903
Greater Melbourne: 20,231
Greater Brisbane: 10,530
Greater Perth: 8,837

Smaller towns and regional communities also appeal to retirees, remote workers, and those seeking a lower cost of living.

How are the US and Australia connected culturally?

The US and Australia have a strong relationship based on trade, defense, and cultural exchange.

Entertainment: American movies, music, and fashion are widely popular in Australia, while Australian artists continue to find success in the US.
Education and research: Both countries collaborate in scientific research, student exchange programs, and business partnerships.
Sports: Australians follow American basketball and football, while some Americans develop an interest in rugby and cricket.

What types of jobs do most Americans hold in Australia?

Americans work in a wide range of industries, including:

Technology: Software developers and IT specialists are in demand.
Healthcare: Doctors, nurses, and allied health professionals fill crucial roles.
Education: Many Americans teach in schools and universities.
Finance & Business: US professionals work in banking, accounting, and consulting.
Mining & Engineering: Australia’s resources industry provides jobs, especially in Western Australia.

Some Americans also run businesses or work remotely for US-based companies while living in Australia. To work legally, you may need visa sponsorship, qualification assessments, or professional licensing.

Do the US and Australia have a totalization agreement?

Yes. The US-Australia Totalization Agreement generally helps avoid Americans from paying Social Security taxes to both countries at the same time.

How does this agreement work?

If a US employer temporarily sends you to work in Australia for up to five years, you may remain covered by US Social Security instead of the Australian system, generally with a Certificate of Coverage.
If you work for an Australian employer, they generally make compulsory Superannuation Guarantee contributions for you, rather than you paying US Social Security on that employment.

Who benefits from this agreement?

US Expats – Helps prevent double Social Security taxation.
Retirees – May combine US coverage and Australian working-life residence periods to qualify for certain retirement, disability, or survivor benefits.
Employers – Helps simplify Social Security obligations for eligible temporary international assignments.

How does Superannuation affect US expats?

Superannuation or “Super” is Australia’s retirement savings system. Employers generally contribute 12% of an eligible employee’s ordinary time earnings into a super fund, which grows over time.

Employer contributions – If you work for an Australian company, your Australian Employer must pay into your Super account.
Superannuation account – Similar to a 401(k) in the US, but mandatory for Australian workers.
Self-Employed Expats – Can voluntarily contribute to Super for retirement savings.
Investment growth – Super funds grow through stocks, bonds, and real estate investments.

Can expats withdraw Superannuation early?

Generally, Super cannot be accessed until you reach your preservation age and satisfy a condition of release. However, early access may be available in limited circumstances, including:

If you permanently leave Australia as an eligible temporary resident, you may be able to claim your super once your temporary visa has ceased.
If you experience severe financial hardship or qualify on compassionate grounds under Australian rules.

Is it easy for Americans to adapt to life in Australia?

Most Americans find it fairly easy to adjust because both countries share a common language and similar lifestyle. However, there are key differences:

Healthcare: Australia has a public healthcare system (Medicare), which is different from the US model.
Local Holidays & customs: Australia Day and ANZAC Day are national public holidays, while Melbourne Cup Day is primarily observed in Victoria.
Cost of living: Major cities, especially Sydney and Melbourne, can be expensive.

What steps should I take to move to Australia?

Moving to Australia involves several steps:

Step 1: Choose the right visa. Options include skilled migration, employer-sponsored, student, and family visas.

Step 2: Meet qualification requirements. Some professions require certification or skills assessments.

Step 3: Secure sponsorship (if required). Some visas need an employer or family sponsor.

Step 4: Gather required documents. Ensure your passport, birth certificates, and qualifications are in order.

Step 5: Sort out healthcare. You may need private health insurance to meet visa conditions.

Step 6: Understand tax obligations. Know how US and Australian taxes work together.

Step 7: Find housing. Research where you want to live and arrange temporary or permanent housing before arrival.

What are some key tax rules for American expats in Australia?

Filing Requirements for Expats. Even if you live and work in Australia, you generally must file a US tax return if your worldwide gross income meets the filing threshold for your filing status. This can apply whether you’re employed by an Australian company, self-employed, or running a business in Australia.
Foreign Earned Income Exclusion (FEIE). The Foreign Earned Income Exclusion (FEIE) allows qualifying expats to exclude up to US$132,900 for the 2026 tax year of foreign earned income from US taxation. The maximum exclusion is adjusted annually. To qualify, you generally must have a foreign tax home and meet either the Physical Presence Test (at least 330 full days in a foreign country during a 12-month period) or the Bona Fide Residence Test (bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year).
Foreign Tax Credit (FTC). If you pay Australian income tax, you may be able to claim the Foreign Tax Credit (FTC) on your US tax return. This credit helps reduce US taxes by applying a dollar-for-dollar credit for taxes paid to the ATO. Since Australia’s tax rates are often higher than US tax rates, many expats find that using the FTC eliminates their US tax liability.
Foreign Housing Exclusion or Deduction. Qualifying expats may be able to exclude certain employer-provided housing amounts or deduct qualifying housing expenses paid from self-employment income. Eligible costs can include rent, utilities, and property insurance, subject to Form 2555 rules and applicable limits.
Superannuation and US Taxation. Australia’s superannuation system is a mandatory retirement savings system, where employers generally contribute to an employee’s super fund. While super is tax-advantaged under Australian law, the US does not automatically treat it as a tax-free retirement account.

US tax treatment can depend on the fund structure, source of contributions, ownership, and applicable reporting requirements, so employer contributions, earnings, and withdrawals may be treated differently for US tax purposes.

Totalization Agreement Between the US and Australia. The agreement coordinates US Social Security and Australian superannuation coverage so eligible workers generally avoid dual Social Security coverage on the same work. The applicable system depends on factors such as employment arrangement and residency.
FBAR (Foreign Bank Account Report) and FATCA Compliance. If the aggregate value of all your foreign financial accounts exceeds US$10,000 at any time during the year, you may need to file an FBAR using FinCEN Form 114. This can include Australian checking, savings, investment, and certain superannuation accounts.

Additionally, under FATCA, you may need to file Form 8938 if your specified foreign financial assets exceed the applicable threshold. For single or married-filing-separately taxpayers living abroad, the threshold is more than US$200,000 at year-end or US$300,000 at any time during the year. Higher thresholds apply to married couples filing jointly.

Business Taxation for American Entrepreneurs in Australia. If you own or operate a business in Australia, both Australian and US tax rules may apply. Australian tax treatment depends on factors such as the entity structure, residency, and whether a foreign business has a permanent establishment in Australia.

US owners may also have additional reporting requirements, such as Forms 5471, 8858, or 8865, depending on the business structure and ownership.

How do I stay compliant with both tax systems?

Use tax treaties. The US-Australia Tax Treaty helps determine which country may tax certain types of income and can help reduce double taxation. However, the treaty generally does not remove a US citizen’s US tax filing obligations because of its saving clause.
Work with a tax professional. Since Australia and the US have different tax systems, consulting a tax professional familiar with both countries’ rules can help you file correctly and take advantage of available deductions and credits.
Keep detailed financial records. Maintain records of your income, tax payments, bank accounts, and business activities to ensure you meet both IRS and ATO reporting requirements.
File on time. Qualifying US taxpayers living abroad generally receive an automatic two-month extension to file, but interest may apply to tax not paid by the regular filing deadline. If more time is needed, you can generally request an extension until mid-October.

Frequently Asked Questions

Can Americans buy property in Australia?

Yes. Americans can buy property in Australia, but many purchases require approval from the Foreign Investment Review Board (FIRB). The rules depend on your residency status and the type of property you intend to buy.

Can Americans open a bank account in Australia?

Yes. Americans can generally open Australian bank accounts, although requirements vary by bank. You’ll typically need identification, an Australian address, and your US Taxpayer Identification Number (TIN) for FATCA reporting.

Can Americans get permanent residency in Australia?

Yes. Americans may qualify for permanent residency through skilled migration, employer sponsorship, family visas, or certain investment pathways. Eligibility depends on factors such as occupation, age, work experience, and visa category.

Do Americans need private health insurance in Australia?

It depends on your visa and residency status. The US is not covered by Australia’s Reciprocal Health Care Agreements, so many temporary US visa holders cannot rely on Medicare and may need private health insurance. Permanent residents and some permanent-residency applicants may be eligible for Medicare.

Do Americans need to report Australian bank accounts to the IRS?

Yes, if you meet the applicable reporting thresholds. Australian accounts may need to be reported on an FBAR, Form 8938, or both.

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Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.