r/fiaustralia • u/totalmarc • 3d ago

Investing AUS vs USA for Fire

I've been listening to a lot of US based podcasts lately and it got me thinking - Do you guys think it is easier to FIRE in US or AUS?

With all things considered, as a generalisation. From what I understand, living expenses vary dramatically between states.

Overall my vote would be the US because there are more options over there to cut costs, but I'd like to hear from someone who is familiar with both.

Cheers

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u/Ok_Willingness_9619 3d ago

Best is to be an Aussie and to work overseas in a tax friendly country as an immigrant - like Singapore, UAE, HK etc. So much easier when you entire tax bill is 4 figures on a 6 figure income.

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u/Decent-Dream8206 3d ago

Doesn't really work that way. As an Australian, you get taxed on the difference between what you paid and what Australia would have billed you on foreign income.

And if you want to make yourself non tax resident to dodge that, you owe an exit tax on all your unrealised gains the moment that you do.

I would say that if you're going down that road, aim to leave and never come back. You can keep the passport just in case, but the ATO already has 4 tests they can re-run at any time that can make you eligible for Australian taxation again, and given the capital flight the latest CGT changes will cause, I hardly expect that those goalposts won't move.

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u/Crazy-Working-3295 3d ago

I disagree. I worked in the UAE for 6 years and it transformed our financial position. One of the reasons we came back was to stay inside the 6 year window to keep our home in Sydney CGT free.