Australia’s more than just a favorite vacation spot—it’s also one of the most desirable places where Americans go to live, work, and raise children overseas. With sun-kissed beaches and relaxed culture, quality healthcare and a thriving economy, it’s little wonder more U.S. citizens are moving down under.
But just how many Americans are living in Australia? What does it do for your lifestyle—and your taxes?
Here, we’ll take you through the numbers, advantages, and disadvantages of life in Australia as an expat American. And we’ll add in advice on where to live and how to get away with taxes.
So, How Many Americans Are Living in Australia
Although precise figures can fluctuate slightly, the U.S. State Department and the Australian Bureau of Statistics approximate that around 110,000 to 120,000 Americans reside in Australia at any one time. This figure encompasses work visa holders, permanent residents, double citizens, and extended visitors.
The largest expat American communities are found in Sydney, Melbourne, and Brisbane—due to employment opportunities, international schools, and city lifestyle.
Why So Many Americans Go to Australia
Life in Australia is both familiar and utterly new. The language is English, there is cultural familiarity with the U.S., and the economy is stable and strong. The quality of life is the reason many expats give for being attracted to Australia.
Advantages of Life in Australia as an American
- Great public healthcare system (Medicare)
- Excellent quality of life and work-life balance
- Outdoor lifestyle and natural attractiveness
- Multicultural society and secure cities
- Stable labor rights and wages
Cons to Consider
- Greater cost of living in large cities
- Cumbersome tax requirements (U.S. + Australia)
- Remote location from U.S. relatives and friends
- Stringent visa and residency requirements
- Time zone challenges for remote U.S. employment
Best Cities in Australia for U.S. Expats
- Sydney
A global business center with beaches, high-quality schools, and cultural activities. It’s great for families and professionals—but it’s also one of the most costly cities in the world.
- Melbourne
Known for its art, coffee culture, and liveability rankings. Many Americans love Melbourne’s diversity, public transport, and job opportunities in education, healthcare, and tech.
- Brisbane
Warmer year-round and more affordable than Sydney or Melbourne. Brisbane is growing fast and offers easy access to the Gold Coast and Sunshine Coast.
- Perth
Remote but beautiful, Perth is perfect for nature lovers and those in mining, energy, or engineering sectors.
- Adelaide
A more relaxed lifestyle, great wine country, and affordability make Adelaide an ideal destination for retirees and remote workers.
U.S. Expat Tax: What You Need to Know While Living in Australia
Americans abroad must still file a U.S. tax return annually, even if they owe nothing. And if you reside in Australia, you’re also paying Australian income tax—so tax filing is more complex than it is at home.
Important U.S. Tax Considerations for Expats in Australia:
- Double Taxation Agreement: The U.S. and Australia have an agreement to ensure you won’t be taxed twice—but you need to file in order to benefit.
- Foreign Tax Credit (Form 1116): Reduces your U.S. tax by claiming what you paid to the Australian Taxation Office (ATO).
- Foreign Earned Income Exclusion (FEIE): You might be able to exclude as much as $126,500 (for 2024) of foreign-earned income if you qualify.
- FBAR & FATCA: If you hold more than $10,000 in total in foreign bank accounts at any point during the year, you’re required to report it through FinCEN Form 114.
Need assistance? Some rely on US expat tax services while in Australia to prevent penalties, optimize refunds, and remain compliant.
Tips for a Successfull Relocation
- Open a domestic bank account beforehand to accept salary and pay rent.
- Understand your visa status—whether it’s a student visa, 482 work visa, or PR (permanent residency).
- Register for Medicare if eligible, or choose private health insurance.
- Use dual tax experts who understand both IRS and ATO systems.
- Keep financial records—including payslips, superannuation contributions, and foreign investments.
People Also Ask (PAA)
- How many Americans are living in Australia?
Estimates suggest around 110,000 to 120,000 U.S. citizens live in Australia, including long-term residents and dual nationals.
- Are Americans required to pay U.S. taxes in Australia?
Yes. U.S. citizens are required to file a federal return annually, whether they’re tax residents of Australia or not.
- Which city in Australia is the best for American expats?
Sydney and Melbourne are popular with career-oriented expats, but Brisbane and Adelaide are low-cost alternatives with laid-back lifestyles.
- Can I access expat tax services while in Australia?
Yes. Most tax offices have experts in U.S. expat tax in Australia and can prepare both IRS and ATO returns for you. - Do I need to file both U.S. and Australian taxes?
Yes. You’re required to file with the IRS every year and with the ATO if you’re a tax resident here. The tax treaty prevents double taxation. - Is Superannuation taxable by the U.S.?
It’s complicated. The IRS does not see Australian superannuation accounts as retirement accounts like the ATO does, and this could require reporting requirements and tax. - Are tax filing deadlines different?
Yes. U.S. taxes are due April 15 (June 15 for expats), whereas the Australian tax year is June 30, with returns generally being due by October 31.
