I am thinking about buying some blue-chip US shares. My rationale being that the Australian dollar is currently buying a lot of US dollars, so this is a way to directly invest in some large US companies while minimizing cost. (The AUD is currently about $1.10 USD, usually it hovers around 80c-90c.) Assuming that the USD bounces back one day, I hope to make a bit of a bonus on the exchange rates. I am considering it as a medium term investment (5+ years).
I know this is doable, but I do not know the tax implications. If I buy US shares, am I subject to US tax on any dividends paid? When I eventually sell those shares, am I subject to US tax at that point in time?
Long and short: what do I need to know? Has anyone here had personal experience in this?