Brett Evans

citizenship because people don't realize that –

And it used to be always a thing that, you know, people used to fly to the US and give birth, you know, wild in the US to get their kids a US passport.

Now it's a liability with the way the taxation system there is driven.

If you've been out of the country for a certain period, like if you're over the age of 30, yeah, so you get that penalty loading.

So you need to have that passion and movement record.

The other key things is if you've been in the United States for greater than eight years, we have what's called the Hart Tax Act, which is an exit tax coming out of the U.S., where if you meet certain thresholds, they will tax you on your worldwide assets to take you out of there.

And last of all, if you hold 401Ks, Roth IRAs and backdoor IRAs and those sort of things, what catches a lot of folks out is they go, oh, you know what, I won't redeem it while I'm in the US.

I'll go back to Australia and pull it back later.

relying on the double taxation agreement to get them through that period.

However, what people don't realise is the Australian marginal tax rates are a lot higher and certainly as we've seen in the last period of time, they're showing no signs of going down anytime soon.

What it means is you draw out your 401k from the US, Uncle Sam will hit you with 30%, which is their marginal tax rate for 401ks.

But then what will happen is when you receive the money here...

that money gets added on top of your income, which will probably push you into the 47s.

So now you're paying the ATO 17% on top of the 30% you've already paid to the IRS.

So yes, there's a double taxation in place to stop double taxing.

Doesn't mean they won't tax you more if you fall into that bracket.

So yeah, the US one's a particular one.

100%.

We always talk about what's the end game?

Where's the final port of call?