Do You Pay Tax When You Transfer Money From the USA to Australia?

Moving your own money to Australia isn't taxed here

The ATO's guidance on transferring money to Australia is built on the same principle regardless of which country the money comes from: Australia taxes income, not wealth. Transferring savings you already owned before becoming an Australian tax resident isn't a taxable event in Australia, however large the amount or however many transfers it takes. Our guide on bringing money to Australia and the tax rules that follow covers the arrival-side detail in full — the capital-versus-income distinction there applies just as much to US dollars as to any other currency.

US citizens and green card holders stay on the hook wherever they live

Moving to Australia changes your Australian tax position but does nothing to your US one. The US taxes citizens and green card holders on worldwide income based on citizenship, not residence — a US person living permanently in Australia is still expected to file a US tax return and report foreign financial accounts, on top of anything owed to the ATO. The two systems don't cancel each other out automatically; a tax treaty and foreign tax credits exist to reduce double taxation, but the filing obligations themselves continue independently.

FBAR: reporting foreign accounts over USD 10,000

The IRS's own page on the Report of Foreign Bank and Financial Accounts (FBAR) states that "a U.S. person ... must file an FBAR to report: a financial interest in or signature or other authority over at least one financial account located outside the United States if the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported." An Australian bank account counts as a foreign account for this purpose — the obligation applies regardless of whether the account produced any taxable income, and it's filed separately from your regular US tax return (FinCEN Form 114).

FATCA and Form 8938: four different thresholds

FATCA reporting, via Form 8938, uses a tiered set of thresholds depending on filing status and where you live, quoted directly from the IRS's own summary page:

1. Unmarried, living in the US: more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.
2. Unmarried, living abroad: more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.
3. Married filing jointly, living in the US: more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.
4. Married filing jointly, living abroad: more than $400,000 on the last day of the tax year, or more than $600,000 at any time during the year.

Form 8938 doesn't replace the FBAR — the same accounts can require both filings.

The US–Australia tax treaty

The US and Australia have a bilateral tax treaty in place, listed on the IRS's own page of treaty countries, aimed at reducing the double taxation that citizenship-based US taxation would otherwise create. Exactly how the treaty applies to a specific type of income or a specific account — pension, super, investment income — is detail worth checking directly against the treaty text or with a cross-border tax adviser rather than assuming a general rule covers your situation.

IRA and 401(k) balances moved into Australian super

Moving US retirement account balances into an Australian super fund isn't a like-for-like rollover, and the ATO's page on overseas super and super pensions is the primary source for how foreign retirement accounts are treated once the money is here. This is genuinely worth checking directly before assuming a 401(k) or IRA can move into super the way a domestic transfer would.

What becomes taxable in Australia once you're a resident

Once you're an Australian tax resident, interest on a US bank account, dividends from US shares, and rent from US property you still own become assessable income here in the year they're earned. If you sell a US asset after your residency start date, the cost base for Australian CGT purposes generally resets to its market value on the date you became a resident, so only the gain since then is taxed in Australia — separately from whatever the IRS requires on the same sale.

Getting the transfer done

None of the tax and reporting questions above change how the transfer itself is processed — Australian banks and providers report international electronic transfers to AUSTRAC as routine compliance regardless of amount, which is separate from any tax question on either side. For the practical side of moving the money — methods, fees, and what to check before sending a large amount — see our guide on transferring money to Australia from the US.

Do I pay Australian tax on money I bring from the US?

Generally no — transferring savings you already owned before becoming an Australian tax resident isn't a taxable event here. Income the money earns afterwards, or a capital gain on a US asset sold after you become a resident, can be assessable.

Do I still have to file US taxes after moving to Australia permanently?

Yes, generally. US citizens and green card holders remain subject to US filing based on citizenship, not residence, and FBAR/FATCA reporting continues to apply to foreign accounts above their thresholds.

What is FBAR and does my Australian bank account count?

FBAR (FinCEN Form 114) is required from a US person whose combined foreign financial accounts exceeded USD 10,000 at any point in the year, per the IRS's own page — an Australian bank account counts as a foreign account.

Do I need to report my Australian super under FATCA?

It depends on the account's value against the Form 8938 thresholds the IRS publishes. Whether an Australian super fund itself needs to be reported is worth confirming with a cross-border tax adviser for your specific account.

Can I roll my 401(k) or IRA into Australian super?

That's governed by the ATO's own rules on overseas super and super pensions, not a simple like-for-like transfer — check the ATO's page directly before assuming it works the same way as a domestic super rollover.