Australian based US citizens and green-card holders – Urgent message regarding your Australian Superannuation

by Daria Vovk
Jul 5, 2024


It is critical for US citizens and green card holders to Consult a US Specialist Tax Adviser before withdrawing or restructuring their Australian Superannuation scheme. Living abroad as a US citizen comes with its own set of financial considerations, particularly when it comes to retirement savings. For Americans residing in Australia, the issue of superannuation – Australia’s version of a retirement savings plan – can be a complex and potentially costly matter if not managed correctly.

Before making any decisions about withdrawing or restructuring your superannuation, it is crucial for US citizens living in Australia to seek guidance from a qualified tax adviser.

You need to avoid triggering a US tax event that can result in an unwanted and unexpected tax liability with the US IRS.

Withdrawing or restructuring a superannuation plan as a US citizen living in Australia can have significant tax implications in the USA.

  • The US and Australia have different tax laws regarding retirement savings, and these laws can interact in complex ways.
  • A tax adviser can help you understand the implications of withdrawals or restructuring your superannuation may and how impact your US tax liabilities and help you minimize any potential tax consequences.

In conclusion

Given the complexity of international tax laws and the potential financial repercussions involved, seeking professional guidance is essential to ensure that you make informed choices that align with your long-term financial goals.

By consulting a US tax adviser, you can navigate the intricacies of cross-border taxation and retirement planning, ultimately safeguarding your financial well-being.


Recently we engaged a new client to complete there 2023 US tax returns.

During 2023 they had withdrawn all of the funds (circa AU$1.2 million) from their superannuation scheme and deposited the funds in their bank account.

Being retired they were intending to use the funds for specific purposes and their ongoing lifestyle.

They did not anticipate that this would create a tax event in the eyes of the IRS, resulting in an unexpected tax liability of approximately AU$450,000.

The key to this is,

  • It is very real and will have a massive and ongoing impact of their retirement.
  • It is completely avoidable.
  • With planning and knowledge there are solutions

The team at US Global Tax can assist you in avoiding these issues.

US Global Tax –