distributions from US pension plans will be taxed as assessable income at marginal Australian income tax rates because under the Australian treaty the income will be treated as though it was Australian sourced. The US will then grant a federal income tax credit for taxes paid in Australia.
Can I go back to Australia after being deported?
They do not have a valid visa to be in Australia, whether their valid visa had expired or was cancelled. If you are deported or removed from Australia, you may also have restrictions on your rights to return. These may be a permanent ban on re-entry or a ban on applying for a future visa for a specified length of time.
Why does the US tax superannuation in Australia?
US tax on Australian superannuation is contrary to the interests of Australia – it reduces the ability of Australians to save to fund their retirement and increases the probability that the affected Australian citizens will be reliant on the Australian government for Age Pension once they retire.
Is there a transition tax for US citizens in Australia?
The transition tax “absolutely punishes many US citizens living abroad”, said Alexander Marino, a tax lawyer who heads the expatriation group with Moodys Gartner tax law firm. His group is holding seminars in Australia on how dual citizens can renounce citizenship and manage their tax obligations.
Is the Australian superannuation fund a grantor trust?
See PLRs 201538006, 201538007, 201538009. Our firm agrees that, under domestic US tax law, Australian Superannuation Funds are grantor trusts. However, there is treaty relief. The problem is that these so-called “international tax experts” have no formal education in tax treaty law and interpretation.
Is there a tax treaty between Australia and the US?
This uncertainty affects not only US citizens and green-card holders living in Australia, but also any Australian citizen or permanent resident currently living in the US who accumulated Superannuation when resident in Australia. The current Australia/US Tax Treaty does not even mention superannuation.
