Changes to Australia’s tax residency rules on the agenda, again - 2022 Update.

Expat 45 Day Rule Taxation
Written By Dean Crossingham

On Wednesday 24 August 2022, Assistant Treasurer and Minister for Financial Services Stephen Jones reminded us that the proposed changes to Australia’s tax residency rules are currently under review by the government, as is the controversial “45-day rule”.

The Australian Financial Review has reported that, while speaking at an Australian Chamber of Commerce event to those of the Australian and Singapore business community, Assistant Treasurer Jones said the new rules for deciding Australian tax residency were in the “government’s in-tray” ahead of the October budget, and the day limit was “being looked at”.

The proposed amendments have been criticised as being overwhelmingly unfavourable to those Australian expats who reside in a country that does not have a double-tax agreement (tax treaty) with Australia. If these changes were to go ahead, many Australian expats would onerously be treated as tax residents if they spend at least 45 days in Australia in an income year.

It was in May 2021 that the proposed amendments to Australia’s tax residency rules were included in the then Liberal-National Coalition government’s budget papers. Since that time, we have had a change of government and have been waiting to see whether the new Labor Party Government will pick up with the proposed changes from where the former had left off. Assistant Treasurer Jones has now indicated that the proposed amendments may now again be raised in the forthcoming October budget, we hope this time without the 45-day rule.

You are able to watch an in-depth analysis of the proposed amendments to Australia’s tax residency rules here.

The Expatriate always tries to make sure all information is accurate. However, when reading our website please always consider our Disclaimer policy.  

Dean Crossingham

Dean is an Accountant and Tax Adviser who specialises in tax services to Australian expatriates and those seeking migration to Australia.

He provides expert guidance in navigating the complex Australian tax consequences of exiting and recommencing Australian residency, first-time arrival into Australia as well as personal foreign investment and business. This includes international relocation tax planning, personal asset structuring as well as attendance to Australian tax return lodgements for Australian expatriates, foreign investors, and businesses.

Dean advises executives, families, and private business owners who are based globally including across Asia, the US, the EU, the Middle East, and Africa.

“For me, helping Australian expatriates and intended migrants is an area that is very important. Relocating yourself and your family to another country is certainly a big decision and there is always a lot at stake. By providing care and expertise across tax planning and compliance, I find that I can really give a lot of comfort and confidence to executives, families, and business owners as their depart, arrive or return to Australia.” 

Dean is a Chartered Tax Adviser, a member of the Institute of Chartered Accountants Australia and New Zealand, and is a Registered Tax Agent. He holds a couple of Master's degrees and is a published author in peer-reviewed journals for the Taxation Institute of Australia.

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