Australia calls it retirement. The U.S. calls it something else.

“Every year, I pay for the privilege of proving that I owe nothing.”

— A U.S. citizen in Australia

Dear Congress,

I was born in the U.S., and my parents moved overseas when I was 3. Later, they split up and my father moved back to the U.S. I grew up in Australia with my Australian mother, visiting the U.S. regularly to see my father and my grandparents.

I am a lot older now and trying to prepare for retirement. I consider myself American-Australian, but my whole life is in Australia. My husband, children, work and home are all in Australia. My father is elderly, and I visit him in Florida when I can.

Paying to prove I owe nothing

I have never lived or worked in the U.S. as an adult and have no U.S. income, but I am in the tax system because I am a U.S. citizen. Every year, I file an FBAR and two tax returns: one for Australia and one for the United States.

The American one is far more complicated and far more expensive, though I never owe anything. Every year, I pay for the privilege of proving that I owe nothing.

Saving for retirement is harder still. The U.S. system does not recognize Australian superannuation as retirement savings, which creates additional problems. I have been rejected by financial institutions in Australia because they do not want the complexity of U.S. reporting compliance.

Retirement savings treated as foreign

I need to simplify my financial life and cut unnecessary costs, so I am now seriously considering renouncing and have started the process. But I still need to visit my father, and I worry it will become more difficult, especially if I have to assist him legally as he ages.

I am heartbroken that I have reached this point. I have always been proud to be an American, and I am devastated to be considering this at all.

Please pass the LaHood Residence-Based Taxation for Americans Abroad Act soon, so that I do not have to make this life-changing decision.

Sincerely,

An American in Australia