The Board of Taxation recently released a report on the review of Australia’s individual income tax residency rules. The board finds that the existing residency rules are no longer appropriate and must be modernised and reformed.

Australia’s existing residency rules are based on four tests. The primary test is the ‘resides test’, which relies on the normal definition of ‘resides’ when deciding who is an Australian resident for income tax purposes.

Even one fails to sastify the reside test, they will still be considered an Australian tax resident if they satisfy one of the three statutory tests:

  • The domicile test
  • The 183 test
  • The superannuation test

Board of Taxation’s individual income tax residency rules review report

Media release by the Minister of Revenue and Financial Services Kelly O’Dwyer

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