US Teachers Working in Australian Schools
American teachers in Australia typically work under one of two arrangements: a fixed-term contract at an international school serving expat families, or direct employment at an Australian state, Catholic, or independent school after having a teaching qualification assessed by AITSL (the Australian Institute for Teaching and School Leadership). Both create superannuation and FEIE questions that a general expat guide won't answer specifically enough.
Contract Type Changes Your Tax Position
International school teachers are usually sponsored on the Skills in Demand visa (subclass 482) with a fixed multi-year contract, giving a clean, predictable basis for the Bona Fide Residence Test once the first year passes. Teachers hired directly by Australian public or independent schools are typically full local employees from day one, often on a pathway to permanent residency (subclass 189 or a state-nominated visa), which usually makes the Bona Fide Residence Test available sooner.
Superannuation Applies to Teachers Too
There's no teaching-specific exemption from compulsory superannuation, your employer contributes 12% of salary into a fund regardless of school type, and the same foreign trust classification questions covered in our Superannuation & US Tax guide apply in full.
Summer Travel vs. the Physical Presence Test
Australian school holidays give teachers long stretches free to travel, often home to the US to see family. If you're relying on the Physical Presence Test (330 days outside the US in any 12-month period) rather than Bona Fide Residence, track those trips carefully: a long US summer visit that pushes you past 35 cumulative days in the US within the relevant 12-month window disqualifies the exclusion for that period entirely.
Housing Allowances and the Foreign Housing Exclusion
International schools frequently include a housing allowance or subsidized accommodation as part of the package. If you claim the FEIE, employer-provided or employer-paid housing can qualify for the Foreign Housing Exclusion on top of the wage exclusion, worth quantifying given Sydney, Melbourne, and Perth rents are among the highest in the OECD.
Worked Example: A Three-Year International School Contract
An American teacher signs a three-year contract at an international school in Melbourne earning AUD 95,000 plus a housing allowance of AUD 20,000. Once she satisfies the Bona Fide Residence Test in year two, she can choose the FEIE (shielding both salary and, via the Foreign Housing Exclusion, part of the housing allowance) or the FTC based on Australian tax paid, whichever produces the lower US liability. Her employer's compulsory 12% super contribution (AUD 11,400 annually) is tracked separately under the superannuation foreign trust rules regardless of which election she makes on her wages.
