Karen is organising a group to take anti-FATCA/CBT action in Australia and has launched the website Let’s Fix the Australia US Tax Treaty!
The mission of Let’s Fix the Australia/US Tax Treaty! is to press for amendments to the Australia/US Tax Treaty and the FATCA IGA to eliminate discrimination against a subclass of Australian citizens that is also disadvantageous to all Australians. We plan to gather the voices of those impacted, including Australian-only family members, and highlight the obligation of the Australian Government to defend its sovereignty and protect Australians against US extraterritorial law.
The purpose of Let’s Fix the Australia/US Tax Treaty! is twofold:
First, to encourage affected Australians to write to their elected representatives to lobby for change on the Australian side of this equation. Australia has signed two agreements with the US that allow this to continue: the Double Tax Agreement (Tax Treaty) and the FATCA IGA. The Tax Treaty was last amended in 2001 and does not provide for US recognition of the tax-advantaged status of superannuation. There are other portions of the treaty that guarantee the double taxation of dual citizens resident in Australia. Our Australian government must put pressure on the US to come to the table an re-negotiate the Tax Treaty.
Second, to serve as an educational resource for both the affected dual citizens trying to understand how the Tax Treaty affects them AND to help educate our elected representatives on the problems caused by Australia’s capitulation to one-sided US demands.
The Australians have been very active and this is a great new development.
Regarding this new website, JC commented on another thread:
In Australia we are out to make some “noise.” On the Day Roy Berg presents to the Tax Institute of Australia seminar on superannuation, on US taxation and Australian Superannuation, a new website aimed at the injustices has been launched:
Best wishes for making lots of “noise” and effecting much needed change!
Yes, what JC said. We owe a great debt to all of you here at Brock. Thank you for the inspiration and encouragement.
There’s a new blog post at fixthetaxtreaty this morning – refuting the common reaction of the Australian government that we must look to the US to address the effect of US law on Australian citizens. What are treaties for???? http://fixthetaxtreaty.org/2016/08/29/pursue-with-us/
Stop by and leave your comments. The experience in Canada, Europe and elsewhere can help inform our efforts in Australia.
I hope that you guys succeed, Karen. “Death by a thousand cuts”. That’s what this FATCA and by extension the United States needs.
The Sydney Morning Herald has published an article that links to the Fix the Tax Treaty site: http://www.smh.com.au/national/us-citizens-renouncing-because-of-tax-laws-affecting-australian-superannuation-20160910-grdb0a.html
I am an Australian citizen who used to work in the US and paid US taxes and social security. Now that I am of retirement age I am entitled to a retirement pension from the US Social Security System.
This comes in every month. It is not a big amount – US$244 – but before I receive the payment US$62.20 is taken out in US tax which I think this is a very big proportion and very unfair. I thought with Donald Trump’s new tax order this amount might shrink but not so.
Is there any way around this tax or would I have to pay tax on it in Australia. My only other source of income is the Australian aged pension and a small amount of interest from savings.
Any help you can give would be appreciated.