If you are thinking about moving to Australia from overseas, or planning to leave Australia, then the change of the individual tax residency rules may affect you. Under the new rule, if you are in Australia for more than 183 days, you are a tax resident. If you are in Australia for less than 183 days but more than 45 days, then the ATO will look at 4 different factors:

– The right to reside permanently in Australia.

– The ability to access Australian accommodation (do you have a property to stay in Australia, which you can always move in anytime?)

– The family connection in Australia.

– The economic connection in Australia.

The change of the individual tax resident rules can reduce the complexity, and more likely that more taxpayers will be treated as tax residents. Hence a good planning is required if you have no intention to take up Australian tax residency.

Please note that the Double Tax Agreement (DTA) will be considered if the other country also treat you as their tax resident under their local law.