Treasurer Wayne Swan says Jacob Lew, the man who looks set to take over as the next US treasury secretary, has the right experience to tackle the country's fiscal problems.
President Barack Obama formally nominated Mr Lew as his new treasury secretary and called on the Senate to confirm him as quickly as possible.
Mr Swan welcomed the announcement saying Mr Lew had a wealth of experience across academia, the private sector and in public policy and administration.
"Mr Lew's budget expertise will be invaluable as the US continues to tackle its fiscal challenges," Australia's treasurer said in a statement.
Mr Lew, chief of staff at the White House, has served as Mr Obama's budget director and has a reputation as a skilled deal-maker.
"I look forward to working closely with Mr Lew, in particular through the G20 as we head towards Australia's host year in 2014," Mr Swan said.
The treasurer also commended the work of outgoing treasury secretary Tim Geithner who has steered the Obama administration through the financial crisis.
"I worked closely with Tim through the darkest days of the financial crisis and I have nothing but praise for his management under such difficult conditions," he said.