What the U.S. “One Big Beautiful Bill” Could Mean for Australian Investors

You may have seen headlines about a new U.S. tax proposal—the “One Big Beautiful Bill.” But what does it mean for Australian investors, especially super funds and small businesses with U.S. exposure? The short answer: it could lead to higher taxes and lower returns.

Where things stand
Australian super funds currently have around $400 billion invested in the U.S., with tax benefits available under current treaties. But this may soon change.

The proposed bill, supported by the Trump camp and passed by the U.S. House of Representatives, aims to increase taxes on countries seen as treating U.S. businesses unfairly—Australia is on that list.

If the bill becomes law, Australian super funds could be taxed more heavily on U.S. investments, which would directly affect long-term super returns.

Why it matters—even if you don’t invest in the U.S.
Even if you’re not directly investing in the U.S., this could impact you.
If your business relies on super funds, or if you’re depending on strong super returns for retirement, increased U.S. taxes could reduce earnings. It also creates uncertainty for Australian businesses with international operations.

What’s being done?
Industry bodies like the Financial Services Council are urging the Australian Government to act. Several major super funds have already met with U.S. lawmakers, highlighting Australia’s role as a key investor in U.S. markets.

While the bill still needs to pass through Congress and faces opposition (even from some Republicans), political insiders warn that “doomed bills” have passed before.

The global tax and finance environment is shifting quickly. If you’re feeling uncertain, you’re not alone. Reach out anytime—we’re here to help.