Tax Considerations When Moving Back to Australia

If you're an Australian expat returning from the US, know these key tax considerations about timing your move, Green Cards, and managing US-based assets:

Timing Your Move

When possible, plan your move carefully to avoid being considered a US tax resident. Moving before meeting the substantial presence test can help you avoid US taxes on post-relocation activities.

For Green Card holders, your federal tax status remains unchanged regardless of timing.

It can be helpful to consider aligning your move with the Australian tax year, ending June 30.

Green Card Holders

If you have a Green Card, you're still a US tax resident even if you leave the country. You should decide whether to keep the Green Card, apply for US citizenship, or relinquish it to exit the US tax system.

US-Based Assets

  1. Bank Accounts: You can keep your US bank accounts or transfer funds to Australia. If you're no longer a US resident, inform your bank using a W-8BEN form.

  2. 401k: Review withdrawal strategies for your 401k to understand tax implications.

  3. Shares: If your US brokerage doesn’t support non-residents, transfer your shares to a platform that does. Consult a tax advisor for potential tax-saving strategies.

  4. Property: If you own US real estate, rental income is subject to both US and Australian taxes. Seek advice on managing your property for renting or selling.

Concluding Thoughts

Returning to Australia from the US requires smart tax planning. Consider the timing of your move, your Green Card status, and how to manage US assets. Consulting an international tax accountant can help ensure a smooth transition and optimize your tax outcomes.

Note: This is general information, not legal or tax advice. Consult a professional for personalized guidance.

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Tax Implications of Relinquishing a Green Card