Australian Tax Residency Change Petition – in the 2021-22 Australian Federal Budget that was handed down by the previous Coalition party it was proposed that the Australian tax residency rules be revised.
The announcement sent shockwaves throughout the Australian expat community and everyone could be heard talking about the “45 Day Rule”.
The Albanese Government has confirmed there will be a second Federal Budget handed down on 25 October 2022 and there has been a confirmation from the government that they are reviewing and considering the Board of Taxations tax residency recommendations from the report they released in 2019.
In anticipation of this Atlas Wealth Management lodged an application for a House of Representatives petition back in May 2022 when the new government was elected to address our concerns and that of the greater Australian expat community about the new tax residency rules.
We are pleased to confirm that the petition has been approved and we have until 5:59pm (AEST) on the 5th of October 2022 to get as many signatures as we can to request that a number of changes are made to the new tax residency rules changes.
What is the Reason for the Tax Residency Petition?
The Board of Taxation delivered to the Australian Government in March 2019 their recommendations after a review of the individual tax residency rules.
Whilst we agree with the spirit of the recommendations in that it provides more certainty for Australian expats living overseas compared to the existing tax residency rules, some of the recommendations do lead to a inequitable treatment of Australians expats who reside in a country that do not have a Double Tax Agreement (DTA) with Australia and who do not have the protection of a tie breaker clause.
What Are We Asking For in the Tax Residency Petition Request?
We are asking the House of Representatives to take into account the inequitable outcome for those Australian expats who do not have the protection of a double taxation agreement when drafting the bill and implement the following:
- A scoring or points system needs to be applied to the Factor Test in order to appropriately weight a persons ties to Australia.
- The proposed 45-day rule needs to be amended to 90 days in line with other countries as too many individuals may be categorised as tax residents without any enduring connection to Australia when visiting friends and family.
- Provision and/or exclusions to be made during times of war or a pandemic when people are displaced.
- Provision and/or exclusions to be made for travel to Australia as a result of family sickness or work/business travel.
- Exclusions to be made for Australian citizen children returning to Australia to attend boarding school under the family factor test.
What Are The Benefits of Organising A Petition through the House of Representatives?
Unlike with many online petitions that people can sign (e.g. Change.org) a House of Representatives petition must be responded to by a Federal Minister.
When a response has been received, the Petitions Committee must first see it at a meeting. The response is then presented to the House by the Committee Chair, it is published on the petition webpage and the principal petitioner is notified.
What Can You Do?
We only have until 5:59pm (AEST) on the 5th of October 2022 to get as many signatures as we can and we need the help and support of the Australian expat community.
Please follow these steps to help us maximise the effectiveness of this tax residency petition and ensure that we provide to Canberra as loud as voice as possible.
Step 1 – Click on the link below and sign the petition. Before your signature is added to this petition you need to confirm it by clicking on the link in the email that is sent to you.
Step 2 – Share this webpage with as many contacts as you have. They don’t have to be an Australian expat to sign.
Step 3 – Share this webpage on all of your social media channels simply by clicking on the social media buttons below.