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The Isaac Brock Society

FATCA and Australia – Part 1 of 2

January 2020:  This thread continues at FATCA and Australia – Part 2 of 2.

 

Let’s Fix the Australia/US Tax Treaty! The Australia/US tax treaty needs urgent revision to prevent double taxation. Get involved at www.FixTheTaxTreaty.org

Australian Americans Overseas 640 x 640

Posts on The Isaac Brock Society website concerning FATCA and Australia

For articles on other websites, see Media and Blog Articles

For general discussion of FATCA, see  FATCA Discussion Thread

For links to some websites and contact info (government, organisations, tax information), see Australia Information Links

***If clicking on a comment link brings you to the wrong page, click here  to get on the most recent page of comments. (alternatively, to reach the most recent comment page, go to  the url in the bar at the top of your browser and delete everything after October 2018

25: John Richardson and Karen Alpert Session in Brisbane Australia Oct 25, 2018

August 2018

01: U.S., U.K., Canada, Australia and Netherlands form international tax enforcement group

January 2018

08: Investing with One Hand Tied Behind Your Back – an Australian Perspective on United States Tax Rules for Non-Resident Citizens

July 2017

18: Australian Greens Senator @LarissaWaters resigns because of her CANADIAN place of birth-Too bad she was born in Canada

March 2017

13: What Lessons Can Be Learned from the Sad Stories of “IRS Compliant” Australians Shaun and Mary?

November 2016

30: “Solving U.S. Citizenship Problems” – Online January 9, 2017 (Australia)

August 2016

25: Let’s Fix the Australia/US Tax Treaty!

May 2016

15: Australia: Dealing with Superannuation

February 2016

19: #Australia funds America’s #FATCA #Ethnic Identification System

September 2012

27: Last Day to make a FATCA submission to the Australian Govt

07: Australia and FATCA

August 2012

28: Australian Government wants YOU to tell them what to do about FATCA

July 2012

20: Australian Financial Services Council lobbies Washington for FATCA exemption

 

1,187 thoughts on “FATCA and Australia – Part 1 of 2”

  1. NOTE

    treaties. I am thrilled to be able to help continue the forward momentum in each of these areas.”

  3. I received a response from the Australian Labor Party to the letter I sent earlier this week. The “relevant” part of the response:

    On 28 April 2014, Australia and the US signed an intergovernmental agreement to assist in the facilitation of FATCA for Australian financial institutions.

    A key objective of the intergovernmental agreement is to support Australian compliance with FATCA in a way that reduces its overall burden on Australian business.

    This includes reporting the information via the Australian Taxation Office (ATO) under the existing Australia–US tax treaty arrangements, including the ‘Convention between Australia and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income’, which was signed in 1982.

    This is obviously just a quick cut and paste job that ignores the specific issues raised in my letter. I’m disappointed as my local Labor MP has been supportive on these issues.

    But, I now have a name and direct email address for someone in the campaign. I will be responding, firmly (but politely) asking for a response to the actual issues in my original letter, with a copy to my local MP. Perhaps, once they figure out that canned responses aren’t going to make me go away, they’ll let me talk to someone who is actually involved in formulating policy on international and/or tax issues. One advantage of living in a country with only 7.5% of the population of the US is that it can be easier to make your voice heard.

    My letter was also sent to the Liberal Party and the Greens leader – haven’t heard back from either of them yet.

  4. This should be used in MANY queries
    .
    1982 is PRE Superannuation I believe and it now does NOT prevent double taxation. We have to ask them to renegotiate as the American Tax Treaty model RECOGNISES Superannuation as a pension ONLY taxed in country of source. Please correct me if I am wrong. TWENTY THREE years is TOO long.

    Australian Taxation Office (ATO) under the existing Australia–US tax treaty arrangements, including the ‘Convention between Australia and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income’, which was signed in 1982.

  5. @JakDac,
    Don’t worry – I will be making that point in my reply. There is a 2001 protocol (amendment) to the treaty – and they should have taken care of superannuation then. The treaty is long overdue for re-negotiation. I think Treasury realises this. But the response I have gotten in the past seems to indicate that the government is just waiting for the US to decide it’s time to renegotiate the treaty. I don’t think that’s good enough. Our government should be proactive in this. Any tax collected by the US on super (contributions, earnings, rollovers, or withdrawals) undermines Australian government retirement policy because it means that the victims will qualify for a larger Age Pension (due to means testing). The IRS collects tax, and Centrelink makes up the difference. Why do they allow this???

  6. Waiting for the US for new text for the treaty: probably the same text from the US of the 4 tax treaties that Rand Paul is trying to block because they reinforce FATCA.

  8. @Karen, the Labour Party has lost the plot immediately when they say making it easier for business instead of “Australian Citizens with clinging US nationality.”

    Second, you have now found how US Policy is undermining stated Australian Policy in regards to saving for retirement. Now you need to tie the knot and close the loop by asking that the Australian Government make an additional contribution to Australian Citizens with clinging US Nationality to pay for the US Tax policy that they are aiding and abetting.

    THEY signed the treaty, THEY need to pay for THEIR mistakes.

  9. @George. I like the attitude. Try and “guilt” the politicians for “mistakes.” I have labeled the mistakes “malpractice” as it implies wrongs involving a certain dereliction of duty.

  10. @George – good idea. In discussing my reply with my daughter, she suggested going to the ALP website and relating as many of their core principles/values to the issues raised by FATCA and CBT. Their slogan – “We’ll put people first – Standing up for middle and working class people”! These are exactly the people they have thrown under the bus.

  11. @Karen, like that thinking on the use of language.

    Re: easier access to Australian MPs than US Congress persons.

    We have 7.5% of the population of the US, yet 42% of the number of Federal Representatives.

    In the US, 1 representative for every 596,000 persons. In Australia, 1 for every 111,000 persons.

    For Tasmania there is a population of 515,000 served by 17 federal representatives or 1 representative for every 30,000 persons.

    So then, we could use a US person activist or two in Tasmania to meet with their MP. Abetz was born in Germany.

  12. My MP is having a “campaign launch” event on Tuesday night. Last I checked only 65 people had purchased tickets – the hall doesn’t hold more than 100.

  13. In Brisbane where ?

    My MP is having a “campaign launch” event on Tuesday night. Last I checked only 65 people had purchased tickets – the hall doesn’t hold more than 100.

  17. Just called treasurers office (Melanie secretary not aware of expat issue)
    Asked re 23 years tax treaty NOT being renegotiated and stated our plight she assured me she will inform treasurer verbally

  19. Put in comment in this story and other stories to do a programme on us

    When they read it they may think about it if they get other requests also

  22. Congratulations, Karen & Crew!

    Condolences, too. None of this is fun or easy.

    Get your tax stuff ready & post it out. Done & hoping no reprisals…

    Celebrate!!!! 😉

  23. Thanks Jane. Working on the tax stuff (slowly but surely). Can’t file 2016 until forms are available in January. But you can be sure it will be ready to go ASAP.

  25. On NOW in Australia can this help us by emailing AU/IS tax people ?

    In September 2015, the Federal Government announced its intentions to commence negotiations on a Double Taxation Agreement (DTA) between Australia and Israel.

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