Reform of Individual Tax Residency Rules

We welcome the Government’s announcement in the Federal Budget 2021–22 to address issues within Australia’s individual tax residency rules. We are writing to address the issues and concerns raised by our members with us regarding the recommendations made by the Board of Taxation (the Board) in its 2019 report 'Reforming Individual Tax Residency Rules – a model for modernisation’ (the Report).

The Tax Institute is supportive of the development of a model to replace Australia’s current tax residency rules where the reform brings certainty and simplicity for affected individuals, employers and the Australian Taxation Office (ATO) while maintaining the integrity of the system. We recognise a diverse range of views on the merits of reform of the individual tax residency rules throughout our committees and the broader membership of The Tax Institute. However, it is our opinion that the recommendations of the Board, if implemented, will lead to unintended outcomes while unnecessarily increasing the compliance burden for many.


Submission prepared by:

The Tax Institute

Submitted to:

The Hon Josh Frydenberg MP Treasurer
The Hon Michael Sukkar MP Minister for Housing and Assistant Treasurer
House of Representatives 

For more information, contact:

Scott Treatt, CTA
General Manager, Tax Policy and Advocacy, The Tax Institute
(02) 8223 0008

Published: 14 September 2021

  • 2021
  • Residency
  • Personal tax & transfer system
  • International - Personal transfer system