Reforming individual tax residency rules: Board of Taxation recommendations

The Board of Taxation’s recommendations include having the 183-day test as the primary rule for tax residency supplemented by a “commencing residency test” for individuals who are not residents in the preceding income year. An “overseas employment rule” would treat an individual who resided in Australia for three years to cease to be a resident if they are mandated to work overseas for more than two years, and in each of those years when working overseas, they return to Australia for less than 45 days.

A factor test is also recommended where individuals test their personal circumstances against certain criteria to determine residency.