Ankurita Lala, an IRS Enrolled Agent with 5 years of expat tax experience, specializes in US tax preparation, Form 5471, GILTI tax, 8621 and 3520/3520-A for US citizens and Green Card holders living and working abroad.
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How many Americans live in Australia and why do they move?
As of 2025, it is estimated that over 100,000 Americans are living in Australia. The American population in Australia mostly consists of a diverse group of individuals, including professionals working for American companies, students, retirees, and those who have relocated through family or spousal sponsorship.
Many Americans choose employment pathways in fields such as finance, technology, and healthcare, often bringing expertise from US-based corporations to Australian markets.
Major cities like Sydney, Melbourne, and Brisbane attract the largest number of American expats due to their economic opportunities, cultural attractions, and well-established expat communities.
Since no single database tracks all Americans abroad, researchers and policymakers rely on multiple data sources.
- US State Department & IRS – While these agencies track passport renewals and tax filings, they do not maintain an official count of US expats.
- Australian Bureau of Statistics (ABS) – Tracks American-born residents, but does not account for temporary visa holders, students, or dual citizens.
- Overseas Citizen Population Analysis – Provides estimates of US expats worldwide, though figures do not always reflect short-term residents or those who have renounced citizenship.
The American expat population in Australia is constantly changing due to:
- Work and Student Visas – Many Americans stay temporarily for work or study before returning to the US.
- Permanent Residency & Citizenship – Some choose to stay long-term, obtaining permanent residency or Australian citizenship.
- Changing Immigration Policies – Visa rules, job opportunities, and economic factors affect the number of Americans moving to or leaving Australia.
Why is Australia a popular destination for Americans?
Many Americans are drawn to Australia due to:
- Career Growth – Australia’s demand for skilled professionals, particularly in technology, healthcare, and education, makes it an attractive place for job seekers.
- Higher Education – Well-regarded universities attract US students looking for global study experiences.
- Quality of Life – Australia offers universal healthcare, a strong economy, and outdoor living, making it appealing for expats.
- Family and Lifestyle Changes – Some move for relationships, retirement, or a slower pace of life compared to the US.
Which cities do Americans prefer in Australia?
US expats typically settle in large cities with strong job markets and established expat communities:
- Sydney – Financial hub with careers in business, tech, and media.
- Melbourne – Known for arts, culture, and education.
- Brisbane – Offers a lower cost of living and growing job sectors.
- Perth – Key location for mining, engineering, and natural resources.
- Adelaide – A smaller city with affordable housing and a relaxed atmosphere.
Some Americans prefer regional areas, especially if they work in agriculture, mining, or remote industries.
How do the US and Australia maintain strong ties?
The US and Australia collaborate in:
- Trade & Business – A free trade agreement simplifies economic partnerships.
- Defense & Security – Military cooperation strengthens security policies.
- Education & Research – Exchange programs connect students and universities.
- Entertainment & Sports – Shared interests in movies, music, and sports encourage cultural exchange.
What types of jobs do US expats find in Australia?
Many Americans in Australia work in:
- Technology & IT – Roles in software development, cybersecurity, and data analysis.
- Healthcare & Medicine – Positions for nurses, doctors, and medical researchers.
- Education & Academia – University professors, school teachers, and researchers.
- Finance & Business – Banking, investment, and corporate leadership roles.
- Mining & Engineering – Highly paid roles in resource extraction and project management.
- Entrepreneurship & Remote Work – Some expats start businesses or work remotely for US-based employers.
To work legally, expats need an Australian work visa, often requiring employer sponsorship.
How easy is it for Americans to adapt to life in Australia?
Adjusting to Australia is relatively easy due to the shared English language and Western culture, but there are differences:
- Healthcare – Australia provides universal healthcare (Medicare), though private insurance is recommended for expats.
- Cost of Living – Cities like Sydney and Melbourne are expensive, especially for rent.
- Public Holidays – Australia Day (Jan 26) and ANZAC Day (April 25) are major events.
- Driving – Australians drive on the left side of the road, which takes adjustment.
Despite the ease of settling in, legal and financial regulations can create unexpected hurdles for US citizens abroad.
- US Citizenship-Based Taxation – The US is one of the few countries that taxes its citizens regardless of where they live. This means Americans in Australia must still file US tax returns and report foreign financial accounts, even if they pay taxes in Australia.
- Banking Restrictions – Some Australian financial institutions limit services for US citizens due to US reporting requirements like FATCA (Foreign Account Tax Compliance Act). Expats may face difficulty opening bank accounts or accessing certain investment options.
- Investment Limitations – US tax rules don’t always align with Australian investment products, making it challenging to invest in local retirement plans (superannuation) or tax-free accounts.
What are the steps to moving to Australia?
- Choose a Visa – Work, student, and family visas are common options.
- Meet Requirements – Some visas require proof of qualifications or job sponsorship.
- Apply for Sponsorship (If Needed) – Employer or family sponsorship may be required.
- Prepare Documents – Ensure passports, educational records, and work credentials are up to date.
- Sort Out Healthcare – Private health insurance may be needed for certain visas.
- Understand Tax Rules – US citizens must file taxes in both the US and Australia.
- Find Housing – Research rental markets in advance to secure a place to live.
Do US expats in Australia have to file US taxes?
Yes. All US citizens must report worldwide income, even if they live abroad. Americans in Australia may still owe US taxes on:
- Australian salary & wages
- Investment income
- Rental income from properties in the US
To avoid double taxation, expats can use:
- Foreign Earned Income Exclusion (FEIE) – Allows expats to exclude up to US$130,000 of foreign-earned income from US taxes (2025).
- Foreign Tax Credit (FTC) – Reduces US tax liability based on income taxes already paid to Australia.
- US-Australia Tax Treaty – Prevents taxation conflicts on specific types of income.
Expats with foreign bank accounts over US$10,000 must also file an FBAR (Foreign Bank Account Report).
How many Americans live abroad?
Estimating the number of Americans living abroad is difficult due to inconsistent data sources and tracking methods. As of 2024, the Association of Americans Resident Overseas (AARO) estimates that approximately 5.5 million US citizens live outside the United States.
Different organizations provide varying estimates:
- AARO & Heitor Pinto’s Research – Estimates 5.5 million, including those born abroad to American parents.
- Federal Voting Assistance Program (FVAP) – Reported 4.4 million in 2022, down from 4.8 million in 2018.
- State Department (Previously 9 million) – No longer maintains this figure.
- United Nations Data – Estimated 3 million US migrants in 2020.
Since the US does not track expats, estimates depend on foreign government data, tax filings, and voter registration records.
Due to these limitations, no single source provides a completely accurate count of Americans living overseas.
Advocacy efforts to ease tax burdens on Americans abroad
Several organizations work to address the financial and bureaucratic burdens faced by US expats:
- Association of Americans Resident Overseas (AARO) – Conducts the AARO Advocacy Survey, which highlights challenges US expats face when dealing with taxes, banking, and residency rules.
- Democrats Abroad & Tax Fairness for Americans Abroad – Lobby for policy changes such as residency-based taxation, which would tax only US-sourced income rather than requiring all citizens to file.
