Reforming the Income Tax Residency Rules for Individuals

Modernising and simplifying the income tax residency rules for individuals

The Board delivered a report to Government in August 2017 on the Income Tax Residency Rules for Individuals.

The Government has responded to the Board, supporting the Board undertaking further consultation to ensure that any proposed residency rules can be appropriately designed and targeted, with particular focus on the integrity of the residency rules.

The Government has not taken a position on the recommendations in the Board’s report. The Government will consider the entirety of the Board’s work on this topic following the Board’s further consultation process, and in light of broader priorities.

The Board is now undertaking further consultation on its key recommendations, in accordance with the Government’s response.

Working Group

The Board has established a new working group for consultation, consisting of Rosheen Garnon (Chair), Dr Mark Pizzacalla and Craig Yaxley. The Working Group is assisted by officials from the the Treasury and the Australian Taxation Office.


The Board’s consultation covers the following issues:

  • options for a two-step model for individual tax residency;
  • the integrity risk posed by ‘residents of nowhere’ and related schemes to circumvent the tax residency rules; and
  • updating the superannuation test.

The Board has developed a Consultation Guide for this further consultation.

The Guide sets out the Board’s observations on potential design principles to guide the modernisation and reform of the individual tax residency rules. It also poses a number of questions about how these design principles would operate to provide simplicity, certainty and integrity and whether these considerations are appropriately balanced.

The Board seeks to consult with stakeholders. The following consultation options are available:.

  • In person: the Board will be undertaking roundtable consultation in October 2018.
  • Written submissions: the Board will be accepting written submissions (by email or post) until 26 October 2018 – details can be found in the Guide.

Please contact the Board of Taxation Secretariat at or +61 2 6263 4366 for more information.