Tax Specialists for Australian Private Clients in the U.S.

We Understand the Need Private Clients and Middle Market Companies Have for Direct and Real Advice.

With offices in Melbourne, Palm Beach, and New Delhi, we are well placed to assist you with your personal and business U.S. Federal and State income tax preparation needs.

Who We Assist With U.S. International Tax

Asena Advisors helps individuals and businesses make sense of U.S. international tax rules on both sides of the Pacific. We work with Australians relocating to or investing in the United States, Australian companies entering the U.S. market, and Americans living or working in Australia.

Australians Moving to the U.S.

If you’re relocating from Australia to the United States, or even spending extended periods there, your time spent in the U.S. can affect your federal tax residency. Even travel patterns that feel temporary or incidental can have tax implications.

Your tax residency status directly determines which country has taxing rights over your income and assets and what reporting obligations apply to you with tax authorities and financial institutions.

Australians who aren’t U.S. citizens are classified as either resident aliens or nonresident aliens, and that distinction determines what you file and how you’re taxed.
The U.S. considers you a U.S. Person (a term defined under the Internal Revenue Code of 1986) if you are any of the following:

• A U.S. citizen
• A green card holder
• A foreign national who meets the Substantial Presence Test (a day-count formula used to determine U.S. tax residency).

Under the Substantial Presence Test (SPT), you generally become a U.S. tax resident if:

• You spend at least 31 days in the U.S. in the current tax year
• Your total U.S. presence equals 183 days or more when calculated using a three-year formula:
  • All days in the current year
  • 1/3 of the days from the previous year
  • 1/6 of the days from the year before that

You can trigger U.S. tax residency without spending 183 days in a single year.

Let’s say, you’ve spent this number of days in the U.S.:

• Current year: 150 days in the U.S.
• Previous year: 120 days
• Two years ago: 90 days

In that case, the IRS counts your days like this:

• 150 ✕ 1 = 150
• 120 ✕ 1/3 = 40
• 90 ✕ 1/6 = 15

Total: 205 days. Based on this level of physical presence, you meet the SPT threshold of 183 days and are generally treated as a U.S. tax resident for that tax year.

That said, even if you technically meet the SPT requirements, exceptions may still apply.

In some cases, individuals can remain classified as nonresidents by qualifying for the closer connection exception, which allows continued foreign-residency treatment if stronger personal, economic, and social ties to another country can be demonstrated.

Once you qualify as a U.S. Person, the U.S. generally taxes you on a worldwide basis. This means global income and assets, not just U.S.-sourced income, may be subject to U.S. tax and disclosure requirements.

This rule catches many migrating Australian families off guard, including those with overseas businesses, trusts, investment accounts, or inherited wealth.

In fact, members of Australian families often relocate to the U.S. without fully realizing the strict reporting and disclosure obligations that apply once U.S. tax residency begins.

The result is often delayed tax compliance, exposure to penalties, and the need to enter IRS remediation programs to correct past filings and limit penalty risk.

This is where nuanced, migration-aware tax advice becomes critical.

Asena Advisors’ migration-focused advisory work, led by CEO and Managing Director Peter Harper, draws on decades of experience advising global families and foreign-owned businesses on U.S. market entry.

This work is focused on identifying cross-border tax and compliance risks early, before they develop into costly reporting issues or regulatory exposure.

Australian Companies Expanding to the U.S.

When an Australian company expands into the U.S., the first question isn’t how to set up, but “why.” What are your objectives?

Are you entering the U.S. to steadily grow market share and long-term cash flow? Or are you pursuing a high-growth, pre-exit strategy designed to scale fast and attract buyers or investors?

Your U.S. entity structure should reflect your primary objective from day one. There is no one-size-fits-all setup, and choosing the wrong structure early can create unnecessary tax exposure, compliance friction, or exit limitations later on.

The U.S. classifies business entities under the “check-the-box” (CTB) regime, which determines how an entity is treated for U.S. income tax purposes.

Under this regime, eligible entities, such as limited liability companies (LLCs), Australian partnerships, unit trusts, and proprietary limited companies, may elect to be treated as a corporation or a transparent (pass-through) entity, subject to specific conditions.

For most Australian companies, the two most common U.S. entity options are a C-Corporation or an LLC:

• A C-Corporation functions similarly to an Australian Pty Ltd company. It is taxed at the corporate level, and shareholders are taxed again when dividends are paid, resulting in double taxation.
  For Australian-owned businesses, this setup also raises questions around withholding tax on dividends paid to foreign shareholders and whether foreign tax credits are available within the group structure.
• An LLC is typically treated as a pass-through entity, meaning profits flow directly to the owners rather than being taxed at the entity level.
  While LLC members are generally protected from business losses beyond their investment, foreign members must file U.S. tax returns annually on U.S.-sourced income.

The optimal choice often depends on how the business actually operates. For example:

• An e-commerce business may be headquartered in Australia, manufacture products in Asia, and ship directly to U.S. customers.
• A software or subscription-based business may be entirely Australian-built, with U.S. customers signing up through a website or platform.
• A people-heavy, services-driven business that needs staff physically working in the U.S. is a different case altogether.
  Once you have boots on the ground, you are likely to create a U.S. trade or business, a level of activity that triggers U.S. tax obligations.
  If that local presence generates U.S.-sourced revenue, the income is typically treated as effectively connected income (ECI), meaning it is fully subject to U.S. taxation and reporting.

In many of these cases, companies establish a U.S. presence primarily for banking and payments infrastructure, such as U.S. bank accounts, payment processors, or integrations with platforms like Shopify.

It’s important to note that having U.S.-based banking and payment processing alone does not automatically create U.S. tax nexus (a sufficient business connection that triggers U.S. tax obligations).

Those With Assets in the U.S.

If you own or control assets connected to the U.S., proper disclosure is essential to avoid automatic and often significant penalties.

For example, if you own or control an interest in an Australian or foreign company, failing to properly disclose that interest on your U.S. personal tax return can trigger an immediate $10,000 penalty.

Superannuation adds another layer of risk.

If you own or control a Self-Managed Superannuation Fund (SMSF), that fund may be treated as currently taxable in the U.S. Failure to disclose an SMSF interest can result in penalties equal to the greater of $10,000 or 5% of the fund’s value.

Beyond entities and trusts, U.S. reporting also applies to foreign financial assets. If the total value of those assets exceeds IRS reporting thresholds, you may be required to file Form 8938 (Statement of Specified Foreign Financial Assets).

Failure to file Form 8938 can result in a $10,000 penalty, with additional penalties accruing if the failure continues.

Depending on how assets are held, transferred, or controlled, additional reporting obligations may also be required, including:

• Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
• Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner

These forms aren’t optional. Failing to file them has consequences beyond penalties.

While the IRS typically has three years to assess additional tax after a return is filed, failure to disclose foreign assets or international transactions can suspend the statute of limitations indefinitely, leaving prior tax years open to examination.

In some cases, underreported cross-border income can extend the audit window to six years, significantly increasing long-term compliance and exposure risk.

Americans Living in Australia

An estimated 101,309 Americans are living in Australia, and most quickly discover that moving overseas does not end their U.S. tax obligations.

In general, U.S. citizens and green card holders living or working in Australia should expect to have ongoing tax responsibilities in both countries.

If you’re a U.S. citizen or resident alien and your worldwide income exceeds the IRS’s minimum filing thresholds, you are obligated to:

• File a U.S. federal income tax return
• Pay any U.S. tax due under the Internal Revenue Code

This rule applies regardless of where you live or work, whether in New York, Melbourne, or Sydney. It can also extend to estate and gift taxes, as well as estimated tax payments, even while living abroad.

Like the United States, Australia operates a national social security system called the Australian Social Security.

For Americans living in Australia, this program often raises a practical question: Which tax system applies to me? The answer depends on your employment situation.

The U.S.–Australia Totalization Agreement (a bilateral agreement designed to prevent double social security taxation) sets out which country’s system applies in most cases.

For self-employed Americans living in Australia, the rules are especially important.

In general, they don’t have to pay U.S. Social Security contributions on their self-employment income, and Australia’s Superannuation Guarantee (SG) system does not mandate coverage for self-employed individuals.

However, even if your income qualifies for the Foreign Earned Income Exclusion (which can reduce or eliminate U.S. income tax), you should:

• File a U.S. tax return if your net self-employment income is $400 or more.
• Pay U.S. self-employment tax on that income.

What Are the Australian Tax Laws for Expats?

Australian tax obligations for expats hinge on one core question: Are you considered an Australian tax resident?

The answer to this question affects what tax laws apply to you, including what income is taxed, where it is taxed, and how extensive your reporting obligations are.

You may be treated as an Australian tax resident if any one of these applies:

1. Domicile Test
   
   1. You live in Australia in a settled or routine way, even if you travel frequently.
   2. Your legal domicile is Australia unless you can demonstrate that you maintain a permanent place of abode outside Australia.
2. 183-Day Test
   You are physically present in Australia for more than half of the tax year, unless your usual place of abode is overseas and you have no intention of residing in Australia.
3. Superannuation Test
   You are an eligible employee contributing to certain Australian government superannuation schemes.
   Superannuation funds often complicate U.S. expat tax filings. The IRS generally does not treat Australian superannuation as a qualified U.S. retirement plan.
   The IRS generally treats these accounts as grantor trusts or employee benefit trusts, even though they function in many ways like a 401(k).
   As a result, anyone with ownership or control over a superannuation fund can face additional U.S. reporting obligations.

If you are an Australian tax resident, Australia taxes you on your worldwide income, whether it is earned inside or outside Australia.

If you are a nonresident, you are generally taxed only on Australian-sourced income.

Australian Expat IRS Tax Reporting Requirements

Australian expats with U.S. connections face complex IRS reporting rules that can significantly affect their tax affairs if not handled correctly.

Understanding how U.S. business entities, reporting requirements, and tax brackets apply to your situation is essential for proactive tax planning and avoiding unexpected tax implications.

This section breaks down the key areas Australian expats need to address to stay compliant and informed.

U.S. Business Entities

In the U.S., how a business is taxed depends on both its legal structure and its tax classification under IRS rules:

• A single-member LLC (owned by one U.S. person) is generally treated as a disregarded entity for federal income tax purposes.
  The IRS treats the LLC as a separate taxpayer and classifies the business as a sole proprietorship, with income and expenses reported directly on the owner’s tax return.
• A multi-member LLC is, by default, treated as a partnership for federal income tax purposes, unless the owners choose a different classification.
• An LLC can also elect to be taxed as a corporation by filing Form 8832 (Entity Classification Election) with the IRS. This allows the business to move from pass-through taxation to corporate taxation when that structure better fits the company’s growth plans, investor requirements, or long-term exit strategy.

U.S. Reporting Requirements for Australian Expats

Australian expats who are considered U.S. taxpayers may have additional reporting obligations when they hold assets outside the United States.

FATCA (Foreign Account Tax Compliance Act) Form 8938 is required if the total value of specified foreign financial assets exceeds IRS reporting thresholds.

For U.S. taxpayers living abroad, these thresholds are higher than those that apply to U.S. residents. However, the filing requirement still applies once the applicable limits are exceeded.

U.S. taxpayers must file Form 8938 with their annual U.S. income tax return and focus on ownership or control of foreign financial assets.

In addition to FATCA reporting, many expats must also file an FBAR (FinCEN Form 114). This form reports foreign bank and financial accounts and is required if the combined highest balance of all non-U.S. accounts exceeds USD $10,000 at any point during the year.

The FBAR (Foreign Bank and Financial Accounts) is filed annually and is submitted directly to FinCEN, not the IRS.

Asena Advisors provides integrated expatriate tax advice and ongoing support for individuals, families, and founders managing cross-border tax obligations.

U.S. Tax Brackets and Rates

The U.S. calculates federal income tax using tax tables that divide taxable income into income brackets, each with its own tax rate.

These rates are marginal, meaning higher rates apply only as income moves into higher brackets, so your overall tax increases as your taxable income rises.

Australian Tax Briefings

Asena Advisors delivers tailored advisory services covering Australian tax law, U.S.–Australia tax treaty considerations, and the practical compliance requirements of managing cross-border tax obligations.

International Tax Advice

We are an international accounting firm providing commercially focused international tax advice.

Our tax advisers help clients navigate complex cross-border tax rules, manage ongoing compliance obligations, and plan with confidence.

We provide strategic tax planning, accurate reporting, and informed decision-making support tailored to each individual’s or business’s specific financial position and long-term objectives.

Tax Residency: Pre-departure Tax Advice

As a taxation and expatriate advisory firm, we specialize in pre-migration planning, market entry, and transaction-driven tax events. Misclassifying tax residency before a major life or business move can be exceptionally costly.

We help clients manage tax residency issues that arise when individuals relocate internationally or maintain meaningful ties to multiple countries.

Our team of tax advisors guides clients through the technical residency rules under U.S. and Australian law, as well as relevant tax treaties, ensuring residency is established (or deferred) in a way that aligns with broader personal and commercial objectives.

Tax Structuring

We design and establish business entities using a holistic, goal-driven approach. Our entity setup and tax structuring services are built around how our clients intend to use the structure, not just how it is taxed today.

We custom-build structures to support objectives such as:

• Generating long-term cash flow from passive investments
• Operating an active business in the USA
• Positioning a company for capital raising, a future U.S. stock exchange listing, or an eventual sale

Australian Tax Returns

Like the United States, Australia requires individuals to file an income tax return each year with the Australian Tax Office (ATO).

For taxpayers with foreign income, offshore assets, or cross-border reporting obligations, accuracy is critical. Errors or omissions in foreign income disclosures or information returns can lead to significant penalties, even when no additional tax is owed.

Asena Advisors offers a full range of personal tax returns and related information filings, with a particular focus on complex situations involving international income, overseas investments, and multi-jurisdictional compliance.

Estate Planning and Asset Protection

Our international estate planning services are tailored for ultra-high-net-worth families with assets, businesses, and residency or citizenship across multiple countries, including the U.S. and offshore jurisdictions.

We focus on protecting wealth, coordinating cross-border structures, and ensuring estate plans remain effective across differing legal, succession, and tax systems.

Selling Property While Overseas

Australia offers a capital gains tax (CGT) exemption for a main residence, but that treatment does not carry over once an individual becomes a U.S. tax resident.

For those living overseas and subject to U.S. tax rules, the sale of Australian property must be assessed under U.S. capital gains rules, not Australia’s more generous main-residence framework.

Proper cross-border advice before selling property is essential to determine which tax rules apply, how gains are calculated, and whether any relief or exclusions may be available.

Start-Up and Employee Share Plans

For globally mobile employees, timing is a critical tax issue. Under U.S. tax law, both cash and non-cash compensation become taxable when they vest (no longer subject to forfeiture).

This rule applies across the board, whether the award is:

• Employee shares
• Stock options (including incentive stock options and non-qualified stock options)
• Cash-based bonus and incentive plans

For founders, executives, and employees moving between countries, poorly coordinated equity plans can result in unexpected tax exposure, double taxation, or reporting failures.

Our international tax planning services are designed to protect the value of equity compensation, align vesting and mobility events, and reduce unintended tax consequences, so share plans support long-term incentives rather than creating compliance risk.

Mergers and Acquisitions

Our team of analysts, attorneys, and CPAs (Certified Public Accountants) advises clients across the entire mergers and acquisitions lifecycle, from capital raising and deal origination through to liquidity events and exits.

We focus on the acquisition of privately held operating businesses in both Australia and the United States, advising ultra-high-net-worth individuals and family offices on every critical deal component of a transaction.

This service includes evaluating the competitive landscape, providing insight on valuation, pricing, and commercial terms, structuring transactions efficiently, and coordinating debt and equity financing.

ATO Audits and Objections

We provide specialist representation and advisory services for clients facing ATO audits and objections.

Our team manages communications with tax authorities, guides clients through the audit process, and supports formal objections and administrative appeals. The goal is to protect our client’s position and resolve disputes efficiently.

Personal Income Tax Returns

During tax season, both individuals and businesses must navigate the complexities of income tax preparation. This task becomes significantly more complex when foreign income or offshore assets are involved.

Cross-border holdings affect not only what must be reported, but also how and where it must be disclosed.

Our professional, timely, and responsive tax services are tailored, practical, and compliant. We provide clear guidance on personal income tax, ensure compliant filings, and offer fair, competitive pricing, even in complex international tax situations.

Company Income Tax Returns

S Corporations are required to file Form 1120 (U.S. Corporation Income Tax Return) to report income, gains, losses, deductions, and credits.

Unlike pass-through entities, C Corporations are taxed at the entity level, meaning the company itself pays U.S. corporate income tax on its profits.

We assist U.S. and foreign-owned companies with the preparation and filing of U.S. company income tax returns, ensuring filings are accurate, timely, and aligned with broader cross-border tax strategy.

General, U.K., and U.S. Expat Tax Advice

Asena Advisors provides integrated expat tax advice for individuals, families, and founders managing cross-border tax obligations involving the United States, the United Kingdom, and Australia.

Our focus is on worldwide taxation, residency planning, disclosure compliance, and treaty-based relief, with services designed to reduce penalty risk and prevent double taxation.

Key areas we advise on include:

• U.S. expat tax compliance, including ongoing Form 1040 (U.S. Individual Income Tax Return) filing obligations, FATCA reporting, Form 8938 (Statement of Specified Foreign Financial Assets), and FBAR (FinCEN 114) for foreign assets and accounts
• Foreign structures and investments, such as offshore companies, trusts, and Australian superannuation
• Treaty-based planning, including foreign tax credits, exclusions, and deductions, such as Foreign Earned Income Exclusion and Foreign Housing Exclusion, to mitigate double taxation
• U.K. tax residency and structuring, covering the Statutory Residence Test (SRT), corporate central management and control, and cross-border investment planning between the U.K. and the U.S.
• U.S. tax residency timing, entity structuring, and classification elections for entrepreneurs and executives entering or exiting the U.S.

The Challenge

Australians are in high demand globally, but as careers and businesses take them offshore, many struggle to find accountants who truly understand the complex tax issues facing expatriates.

One of the biggest risks for Australians with U.S. tax exposure is the disclosure of foreign trusts and structures.

Australian discretionary trusts, commonly used for tax planning and asset protection, trigger extensive U.S. reporting obligations, with severe penalties for errors or non-compliance.

This risk is amplified by FATCA reporting, under which Australian financial institutions now automatically report U.S. account holders to the IRS. As enforcement has increased, non-compliance has become easier to detect and far more costly.

Asena Advisors bridges this gap, providing dedicated expatriate tax expertise to help Australians move, work, and invest overseas with clarity and confidence.

Australian Expat Tax Advice and Support

Asena Advisors provides specialist tax support to Australian citizens and residents who are managing U.S. tax obligations or relocating to the United States.

Our Australian expat practice is built on the understanding that poor or delayed advice before significant life events, such as relocation, investment, or business expansion, can lead to costly, often irreversible tax consequences.

FAQs

1. Which U.S. entity structure makes sense for your Australian business?

While entity selection can involve several options, including corporations, LLCs, partnerships, and S Corporations, in practice, the two structures most commonly used by foreign-owned businesses are corporations and LLCs.

The right choice depends on your commercial objectives, investment plans, and long-term strategy.

2. How much does a tax accountant cost in Australia?

Tax accountant fees in Australia vary based on complexity, location, and the adviser’s qualifications. The most accurate way to determine cost is to get a quote tailored to your specific situation.

3. Is it worth getting a tax accountant in Australia?

For simple tax affairs (for example, a single employment income source with no business, investments, or foreign income), tax software may be sufficient.

However, once business income, investments, foreign assets, or cross-border tax obligations are involved, the risk of costly errors increases.

In these cases, a qualified tax accountant provides strategic insight, accuracy, and protection against penalties, interest, and unnecessary tax exposure.

4. Do I need to lodge a tax return in Australia if I live overseas?

It depends on your Australian tax residency status and whether you continue to earn Australian‑sourced income.