I am travelling from Panama to Los Angeles and around the States for approx 80 days then flying back to Panama and making my way up Central America for approx 3 months before flying back to LA to fly home to Australia.
Will this be OK with an ESTA?
Does it count as spending too long in the States?
I have been told that Panama is not far enough away.
According to the rules set forth under the VWP, you're allowed 90 days in the US, and visiting adjacent countries doesn't reset it. The VWP zone includes the US, Canada, Mexico and adjacent islands.
Fortunately for you, Panama is NOT part of the VWP zone, and therefore you're fully entitled to visit Panama, have your VWP time period reset, and later return to the US. However, you are still subject to any questions the CBP may have, and returning to the US sometimes results in a few extra questions. If your itinerary is all prepared and you can show your plans, however, you'll be fine (I've done this too - although not to Panama, I went to Cuba).
