Australian Superannuation and US Taxes
Australian superannuation is one of the most complicated areas for US expats. The IRS treats super very differently than the ATO does.
How the IRS views your super
The IRS doesn't recognize Australian super as a retirement account. It can be classified as a foreign trust (triggering Form 3520/3520-A) or a PFIC (with punitive tax treatment).
The employer contribution problem
In Australia, the 11% super guarantee isn't taxed as income. For US tax purposes, that employer contribution is considered taxable income in the year it's made.
Investment earnings
Earnings inside your super fund may be taxable for US purposes each year, even though you can't access the money until preservation age.
The tax treaty
The US-Australia tax treaty has provisions for super, but they're limited. You need to file Form 8833 to claim treaty benefits.
FBAR and FATCA
Your super counts toward both FBAR ($10,000 threshold) and FATCA ($200,000 threshold) reporting requirements.
Super giving you a headache?
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