Moving to Australia from the USA
Financial setup, tax, banking, home loans and cost of living — everything Americans need to know before and after arrival.
Moving from the United States to Australia is one of the most popular international relocations in the English-speaking world — and for good reason. But the financial transition is complex. Tax systems, banking, superannuation, visa restrictions and property rules all work differently in Australia. This guide covers everything you need to know.
The AUD/USD Exchange Rate — What Your Money Is Worth
The first thing most Americans notice is the exchange rate. As of April 2026, 1 USD ≈ 1.58 AUD. This means your US savings go further in Australia — but Australian salaries also look larger in number than they are in USD terms.
Key point: Australian salaries look high in AUD but are worth less in USD than the number suggests. Always do the conversion when comparing job offers.
Setting Up an Australian Bank Account
You can open most Australian bank accounts before you arrive. The major banks for new arrivals are:
- Commonwealth Bank (CommBank) — largest bank, most branches, good for new arrivals
- ANZ — strong international services, good for arriving from overseas
- NAB — competitive fees, widely used
- Westpac — good mobile app and branch network
- ING / Up / Ubank — online-only, no fees, good for everyday banking
To open an account you typically need your passport and Australian address. Some banks allow you to open an account 3 months before you arrive using just your passport.
Tip for Americans: Australia uses BSB numbers (like a US routing number) and account numbers. There are no cheque books — payments are by direct transfer, BPAY or card. Australia is almost entirely card-based.
Australian Tax — How It Works for Americans
Australia has a progressive income tax system similar to the US, but with significant differences:
| Taxable Income (AUD) | Tax Rate | Approx. USD Equivalent |
|---|---|---|
| $0 – $18,200 | Nil | $0 – $11,500 |
| $18,201 – $45,000 | 19% | $11,500 – $28,500 |
| $45,001 – $120,000 | 32.5% | $28,500 – $76,000 |
| $120,001 – $180,000 | 37% | $76,000 – $114,000 |
| Over $180,000 | 45% | Over $114,000 |
Tax is also charged by the financial year (1 July – 30 June), not the calendar year. You file a tax return by 31 October.
Critical for Americans: The US taxes its citizens on worldwide income — even when living abroad. As an American in Australia you may need to file BOTH an Australian tax return AND a US return. The Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit usually prevent double taxation, but you should use a tax accountant familiar with US expat tax obligations.
Superannuation — Australia’s Version of 401(k)
Superannuation (super) is Australia’s mandatory retirement savings system. Your employer must contribute 11.5% of your salary into a super fund on your behalf. This is on top of your salary — unlike the US where 401(k) contributions often come from your pre-tax salary.
Key facts for Americans:
- Super is generally locked until you reach preservation age (60–65) and retire
- On a temporary visa, you can claim your super back when you permanently leave Australia (Departing Australia Superannuation Payment — DASP). Note: taxed at 35–45% on the way out
- On a permanent visa, you can roll super into the Australian tax system and benefit from the 15% concessional tax rate on earnings
- The US and Australia have no totalization agreement — super contributions do not count toward US Social Security credits
Project Your Super Balance
See how much superannuation you’ll accumulate based on your Australian salary.
Australian Health Insurance — Medicare and Extras
If you are on a permanent visa or eligible for Medicare (certain visa types qualify), Australia’s public health system covers most GP visits and hospital treatment for free or at very low cost.
Private health insurance (PHI) covers extras like dental, optical and physiotherapy. Many employers offer PHI as part of salary packages. Monthly cost: approximately A$150–$300 for singles, A$350–$600 for families.
Visa note: Your Medicare eligibility depends on your visa type. Permanent residents and some temporary visa holders are eligible. Check with Services Australia for your specific visa.
Buying Property in Australia as an American
Americans can buy property in Australia but face additional rules and costs as foreign purchasers:
- FIRB approval: Foreign Investment Review Board (FIRB) approval is required for most property purchases. New dwellings: generally approved. Established homes: only for temporary residents, and must be sold when you leave.
- Foreign purchaser stamp duty surcharge: 7–8% surcharge on top of standard stamp duty in most states. On a $700,000 property this adds $49,000–$56,000.
- Land tax surcharge: Annual land tax surcharge of 0.5–4% depending on state
- Home loans: Temporary visa holders can get Australian home loans but LVR is often capped at 70–80% and rates may be higher
Calculate Foreign Purchaser Stamp Duty
See exactly how much stamp duty you’ll pay as a foreign buyer in each Australian state.
Cost of Living Comparison — USA vs Australia
| Expense | USA (average) | Australia (average) | Difference |
|---|---|---|---|
| 1BR apartment rent (city) | $1,900/mo | A$2,200/mo (~$1,400) | Cheaper in AU |
| Groceries (weekly) | $120 | A$150 (~$95) | Slightly cheaper |
| Health insurance (single) | $400–$600/mo | A$150–$250/mo (~$100–160) | Much cheaper |
| Petrol/gas (per litre) | $0.70/L equiv. | A$1.90/L (~$1.20) | More expensive |
| Electricity (monthly) | $110 | A$200 (~$127) | More expensive |
Transferring Money from the USA to Australia
Moving your savings from the US to Australia is one of the most important financial decisions of your relocation. Using your bank’s international transfer service is typically the most expensive option.
Specialist money transfer services typically offer significantly better exchange rates and lower fees than banks:
- Wise (formerly TransferWise) — transparent fees, mid-market rate, fast transfers
- OFX — good for large transfers, personal service, rate alerts
- Remitly — fast transfers, good mobile app
Savings example: Transferring $50,000 USD through a major bank vs Wise can save A$1,500–$2,500 in exchange rate differences. For large transfers of retirement savings or home deposits, this is significant.
Australian-Specific Financial Tools to Bookmark
Superannuation Calculator →
Stamp Duty Calculator →
Home Loan Calculator →
Borrowing Power Calculator →
Budget Planner →
Disclaimer: General information only. Not financial advice. Always verify current rates and thresholds with relevant Australian authorities.