Financial Adviser for Australians in the US
Key points
Cross-border financial planning: Australians living in the US need to consider how Australian and US tax residency, superannuation, investments and property ownership interact.
Managing investments and wealth: PFIC rules, equity-based compensation such as RSUs and stock options, and Australian property tax implications can affect your financial strategy while living in the US.
Planning for a return to Australia: Understanding US retirement accounts, Social Security benefits, potential exit tax implications and Australian superannuation can help you prepare for a financially structured return home.
Financial Adviser for Australians in the US
Moving to the United States can provide Australians with significant opportunities to advance their careers, increase their earning potential, and build long-term wealth. From professionals working in Silicon Valley to Australians employed in finance, law, and other industries, relocating to the US can be an important financial milestone.
However, managing your finances across Australia and the United States can introduce considerable complexity. Australian superannuation, US retirement accounts, equity-based compensation, investment portfolios, property ownership, and tax residency all require careful consideration when your financial affairs span two countries.
Finding a financial adviser for Australians in the US who understands the Australian financial system and the challenges of expatriate life can help you make informed decisions about your wealth.
This guide explores the key financial planning considerations for Australians living in the United States, from managing Australian investments to planning for an eventual return home.
Why Australians in the US need specialised financial advice
Living in the United States can create opportunities to accumulate wealth through higher salaries, bonuses, employer benefits, and equity-based compensation.
However, financial decisions that may be straightforward in Australia can become more complicated when US tax rules and financial regulations are involved.
Australians living in the US may need to consider:
Australian and US tax residency.
Australian superannuation and US retirement accounts.
The tax treatment of Australian investments under US rules, including PFICs.
Equity-based compensation, such as RSUs and stock options.
Australian property ownership and rental income.
Currency exposure between Australian and US dollars.
The financial implications of returning to Australia.
These considerations are interconnected. A decision about an Australian investment or retirement account may have implications for your broader financial position across both countries.
1. Understanding Australian tax residency and US tax obligations
One of the first considerations when relocating to the United States is understanding how the move affects your Australian tax residency.
Australian tax residency is determined by several factors, including your residential circumstances, employment arrangements, and ongoing connections to Australia. Moving overseas does not automatically mean you cease to be an Australian tax resident.
The United States generally taxes US tax residents on their worldwide income, subject to applicable rules and exceptions.
The interaction between Australian and US tax laws can therefore be complex. The Australia-US Double Tax Agreement may provide relief from certain instances of double taxation, but its application depends on your circumstances and the type of income involved.
Understanding your tax position before relocating can help inform decisions about investments, property ownership, and your broader financial strategy.
For a practical overview, read our US Essentials Kit: A Guide for Australians Moving to the United States.
2. Managing Australian superannuation while living in the US
Australian superannuation is often one of the most significant financial assets Australians retain when moving overseas.
Your superannuation generally remains invested in Australia after you relocate. However, making additional contributions while living in the US requires careful consideration.
The US tax implications of contributing to superannuation
While additional contributions may provide benefits under Australian superannuation rules, the US tax treatment of Australian superannuation can differ significantly.
The treatment of contributions, investment earnings, and withdrawals may depend on the fund structure and your individual circumstances.
Before making additional contributions, consider:
How contributions and investment earnings may be treated for US tax purposes.
Whether your superannuation fund creates additional US tax reporting obligations.
How additional contributions fit within your long-term retirement strategy.
To explore managing Superannuation as an Australian living in the US, read our dedicated blog post on Should I be contributing to Super while living in the US as an Aussie Expat?
3. Understanding PFICs and Australian investments
One of the most important investment considerations for Australians living in the US is the potential application of the US Passive Foreign Investment Company (PFIC) rules.
PFICs are a classification under US tax law that can apply to certain foreign corporations, including some foreign investment funds.
Australian managed funds and ETFs may fall within the PFIC rules, depending on their structure and underlying investments.
Why PFICs matter for Australian expats
US taxpayers holding PFICs may face complex tax treatment and additional reporting obligations, including the potential requirement to file IRS Form 8621.
For Australians moving to the US, an existing Australian investment portfolio may therefore require careful review before becoming a US tax resident.
Key considerations include identifying investments that may fall within the PFIC rules, understanding the potential tax and reporting obligations, and assessing whether existing investments remain appropriate after relocating.
An investment strategy that was suitable while living in Australia may not necessarily remain appropriate once you become a US tax resident.
4. Managing equity-based compensation in the US
Equity-based compensation can represent a substantial component of remuneration for Australians working in the United States, particularly in technology, finance, and senior corporate positions.
Common arrangements include:
Restricted Stock Units (RSUs): Shares awarded by an employer that generally vest over time, subject to the plan's conditions.
Stock options: The right to purchase company shares at a specified exercise price, subject to the plan's terms.
Employee Stock Purchase Plans (ESPPs): Arrangements that allow eligible employees to purchase company shares, sometimes at a discount.
While these arrangements can help build wealth, they also introduce tax, investment concentration, and cash flow considerations.
Planning around RSUs and stock options
For Australians working in the US, employer equity can become a significant part of their overall financial position.
The timing of vesting, exercising options, and selling shares can affect the tax treatment of the compensation. The relevant rules may differ depending on the type of award, your residency status, and the circumstances in which the equity was granted and vested.
Holding a substantial amount of wealth in your employer's shares can also create investment concentration risk, particularly if your salary and other employment benefits depend on the same company.
A broader financial strategy should consider how equity compensation fits alongside your cash savings, Australian investments, superannuation, and long-term financial goals.
For further information, explore our articles on RSUs for Australian Expats, Stock Options and Employee Stock Purchase Plans.
5. Managing Australian property and investments
Many Australians relocating to the US choose to retain Australian property or existing investment portfolios.
However, maintaining Australian assets while living overseas introduces additional financial considerations.
For Australian property owners, these may include rental income taxation, mortgage repayments, property management costs, and capital gains tax implications when selling.
For investment portfolios, the interaction between Australian tax rules and US tax treatment can be particularly important.
Australian shares, managed funds, and ETFs may have different tax implications for US taxpayers, making it important to review existing investments before relocating.
Your investment strategy should also consider currency exposure, liquidity requirements, and your long-term plans.
For further insights, read our article on Financial Planning for Australians Working in Tech in the United States.
Australian capital gains tax when leaving Australia
When ceasing Australian tax residency, certain assets may be subject to Australia's deemed disposal rules for capital gains tax purposes.
These rules can potentially treat certain assets as though they have been disposed of at market value when an individual ceases to be an Australian tax resident, subject to applicable exceptions and elections.
Understanding the potential tax implications of departing Australia can help inform decisions about investment ownership and the timing of asset disposals.
6. Planning your return to Australia from the United States
Returning to Australia after working in the US can introduce a number of financial considerations, particularly if you have accumulated US retirement savings, investments or Social Security benefits.
US exit taxes: Returning to Australia does not automatically trigger a US exit tax. However, certain US citizens, long-term green card holders and those considered covered expatriates may be subject to US expatriation tax rules when relinquishing their citizenship or residency. Understanding whether these rules apply before leaving the US can be important.
US Social Security: Australians who have worked in the US and paid into Social Security may be eligible to receive US Social Security benefits after returning to Australia. The US-Australia Social Security Agreement can also help coordinate eligibility where an individual has worked in both countries.
401(k) arrangements: A US 401(k) does not necessarily need to be withdrawn when you return to Australia. Depending on your circumstances, you may be able to retain the account in the US, although its ongoing tax treatment should be considered once you become an Australian tax resident. Transferring a 401(k) directly to an Australian superannuation fund is not necessarily straightforward and may have tax implications.
These decisions should be considered as part of a broader return-to-Australia strategy, alongside your Australian superannuation, investments, property and other assets.
How Runway Wealth Management supports Australians living in the US
Runway Wealth Management is a specialist financial advice firm dedicated to helping Australians living and working overseas navigate the financial complexities of expatriate life.
Our Australian-centric approach focuses on helping clients manage their Australian financial affairs while considering the implications of their overseas circumstances.
We provide tailored financial advice across superannuation, wealth management, retirement planning, tax financial planning, and property modelling.
Explore our Australian Expats in the US blog collection for further insights into the financial considerations of living in the United States.
Conclusion - Finding a financial adviser for Australians in the US
Living and working in the United States can provide Australians with opportunities to advance their careers and build wealth.
However, managing your finances across Australia and the US requires careful consideration of tax residency, superannuation, PFICs, equity-based compensation, investments, property ownership, retirement planning, and potential exit tax implications.
Working with a financial adviser for Australians in the US who understands the Australian financial system and the complexities of expatriate life can help you develop a coordinated strategy for managing your Australian financial affairs.
Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.
If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the link below:
General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.
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