US Foreign Accounts Tax Compliance Act in Australia

  • Blog
  • US Foreign Accounts Tax Compliance Act in Australia
View All Articles

Scroll for more

On 28 April 2014 Australia signed an Intergovernmental Agreement with the United States which provides that Australia will comply with the provisions of United States legislation, the Foreign Tax Accounts Compliance Act (“FATCA”).

What is the Foreign Tax Compliance Act?

FATCA is United States legislation which commenced approximately in March 2010.

FATCA creates an information and reporting regime which requires financial institutions to comply with certain reporting requirements and due diligence processes in respect of accounts held by United States persons.

The purpose of FATCA is to allow the United States Internal Revenue Services to collect information about US persons investing or earning income through non-US institutions.

Which institutions will be affected by FATCA?

In Australia, a number of institutions will be affected by FATCA including banks, building societies, certain insurance companies, investment funds, credit unions, custodial institutions and some brokers. These institutions will be required to be registered with the United States Internal Revenue Service.

However, rather than these institutions reporting directly to the United States Internal Revenue Service, they will be required to report to the Australian Taxation Office. The Australian Taxation Office will then refer the information to the United States Internal Revenue Service.

From 1 July 2014 these financial institutions will be required to undertake due diligence processes to identify any reportable accounts (that is accounts with any US indicia). This will be reportable in the 2015 calendar year to the ATO.

Draft Legislation

The government has released draft legislation that will implement FATCA in Australia.

If you are a United States citizen holding an account or accounts in Australia or you are a financial institution and are concerned about the legislation and how it will impact on you, please do not hesitate to contact me.

Our team can assist you with all your taxation issues.

The information provided in this article is for general information and educative purposes in summary form on legal topics which is current at the time it is published. The content does not constitute legal advice or recommendations and should not be relied upon as such. Whilst every care has been taken in the preparation of this article, FC Lawyers cannot accept responsibility for any errors, including those caused by negligence, in the material. We make no representations, statements or warranties about the accuracy or completeness of the information and you should not rely on it. You are advised to make your own independent inquiries regarding the accuracy of any information provided on this website. FC Lawyers does not guarantee, and accepts no legal responsibility whatsoever arising from or in connection to the accuracy, reliability, currency, correctness or completeness of any material contained in this article. Links to third party websites or articles does not constitute any endorsement or approval of those sites or the owners of those sites. Nothing in this article should be construed as granting any licence or right for you to use that content. You should consult the third party’s terms and conditions of use in relation to any third-party content. FC Lawyers disclaims all responsibility and all liability (including liability for negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way. Appropriate legal advice should always be obtained in actual situations.


Prefer to get in touch?

With offices in Brisbane, Sunshine Coast and Sydney, our team is well equipped to provide both advice and support across a broad range of legal areas.

Free call 1800 640 509
  • This field is for validation purposes and should be left unchanged.