Tax and Wealth

US Social Security Q & A

This information is not financial advice and can change and you should always check with a registered financial advisor or tax expert.

For more helpful answers, ask in Aussie Expats Coming Home

Will my Social Security payments impact Australian Age Pension?

Yes.there are to the reciprocal Social Security agreement, between both countries which means that time worked in either country can count towards eligibility for benefits. However, you cannot “double dip”—meaning you won’t receive full payments from both systems without adjustments.

Will I be means tested?

Social Security is NOT means-tested, so you’ll still receive it.
The Australian Age Pension IS means-tested, meaning your Social Security counts as income and could reduce or eliminate your pension payments.
If your Social Security payment is lower than what you’d receive on the full Australian pension, Centrelink may top up the difference, but you won’t receive both in full.
If your Social Security is higher, you may not qualify for the Australian Age Pension at all.

How is means testing calculated?

The Australian pension reduces by 50 cents for every dollar over the income threshold (currently $204 per fortnight for singles, $360 for couples as of 2024).
Your U.S. Social Security payments will be counted as income, which could reduce or eliminate your Age Pension entitlement.

Tax Considerations?

While your Social Security is not included in taxable income in Australia, tax implications can still arise depending on your residency status and any other income sources.
If you give up a U.S. green card and have significant assets (over $2 million worldwide per person), you might be subject to U.S. exit tax.

What Should You Do?

Before moving back, check your total expected Social Security payments and see how they compare to the Australian Age Pension thresholds.
Register with Centrelink If you’re unsure, speaking directly with Centrelink’s International Services https://www.servicesaustralia.gov.au/international-services and provide your Social Security details to get an assessment of what you’d be eligible for.
Seek financial advice—an international tax or pension specialist can help you plan for the best outcome.

This information is not financial advice and can change and you should always check with a registered financial advisor or tax expert.

For more helpful answers, ask in Aussie Expats Coming Home

Can I keep my RRSP (Registered Retirement Savings Plan) after moving to Australia?

Yes! You don’t have to close your RRSP when you leave Canada.
Your investments will continue to grow tax-free in Canada until you turn 71.
Withdrawals are subject to a 25% withholding tax (reduced to 15% under the Canada-Australia Tax Treaty).
You can contribute using unused RRSP room while a non-resident.

Can I still contribute to my RRSP as a non-resident?

What happens if I withdraw from my RRSP while living in Australia?

Withdrawals are subject to a 25% Canadian withholding tax, but the Canada-Australia Tax Treaty reduces this to 15% for Australian residents.
Your U.S. Social Security payments will be counted as income, which could reduce or eliminate your Age Pension entitlement.

Can I keep and trade in my non-registered investment account after moving?

Maybe. Some Canadian financial institutions allow non-residents to keep and trade in their accounts, while others impose restrictions.
Funds can be transferred internationally if permitted.
It’s best to check with your bank or brokerage before you leave.

Can I transfer money to my non-registered investment account from Australia?

Yes, if your financial institution allows it. You may be able to fund your account via international wire transfers or global accounts such as HSBC Premier Banking, but check if there are any restrictions or fees.

Do I need to notify my financial institution about my move?

Yes, if your financial institution allows it. You may be able to fund your account via international wire transfers, but check if there are any restrictions or fees.

Will my RRSP be taxed in Australia?

While RRSPs remain tax-free in Canada until withdrawn, Australia may consider them taxable. It’s best to consult a cross-border tax expert to understand your obligations.

Will my RRSP be taxed in Australia?

While RRSPs remain tax-free in Canada until withdrawn, Australia may consider them taxable. It’s best to consult a cross-border tax expert to understand your obligations.

What should I do before leaving Canada?

Before you move, review your investment strategy and speak with your financial institution and a tax expert. Some banks have strict policies for non-residents, so it’s good to clarify your options ahead of time.