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Australian residency tax change...

Australian residency tax changes and implications for expats

A new damning “Bright Line” test is proposed that would deem someone a Resident for Australian Tax Purposes if they are in Australia for more than 183 days in a year. This has very serious and unfair consequences for many expats during this pandemic.
Australian residency tax changes and implications for expats

Australian residency tax changes and implications for expats

A new damning “Bright Line” test is proposed that would deem someone a Resident for Australian Tax Purposes if they are in Australia for more than 183 days in a year. This has very serious and unfair consequences for many expats during this pandemic.

Hidden away in the back of the Australian Budget and unmentioned in the Treasurer's speech, was a simple statement confirming that:

“The Government will replace the individual tax residency rules with a new framework that is easy to understand, provides certainty and reduces compliance costs for globally mobile individuals and their employers.”

The Budget has flagged that these changes will likely come into effect from 1 July 2022. 

A new damning “Bright Line” test is proposed that would deem someone a Resident for Australian Tax Purposes if they are in Australia for more than 183 days in a year. This has very serious and unfair consequences for many expats during this pandemic. 

What is more concerning is the proposed ‘Factor Test’ for someone that has spent more than 45 days in Australia. This test is a simple tick box test made up of four questions that are so ‘loaded’ that almost any expat would score enough to be considered a resident if they tick two of the boxes. 

Review this free webinar as we clarify:

  • proposed changes to the Australian Residency Rules
  • negative impacts of the "Bright Line Rule & Factor Test"
  • what the new superannuation changes will mean for expats
  • lobbying against unreasonable Residency Rule changes.

Australasian Taxation Services, a SMATS Group company, has been at the forefront of Australian Tax Residency as an expat tax specialist for more than 26 years. We consider these new residency rules to be unreasonable, unjust and unacceptable. We need to collectively lobby the ATO and Parliament for fairer residency rules.

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All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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