Advance Blog

August 6, 2021
AustCham 2018-01

Parliament of Australia Petition EN2834 – Proposed Taxation Changes to Residency Rules

The petition is currently open for signatures.

The petition is open for collecting signatures until the signature closing date. Petitions are open for collecting signatures for four weeks from the date of certification by the Committee.

Petition Reason

The March 2019 Board of Taxation Residency Report proposed Factor Test does not achieve the goals of appropriate, fair or simple and is not an effective method in dealing with residency because: 1. The 45 day period is too short: a. It does not account for 14 day Quarantine requirements, b. School holidays are over 10 weeks, so any genuine non resident seeking to bring his family for extended vacation would be captured, c. Vacation travel is likely to be longer in a post covid19 world due to travel costs, uncertainty, and quarantining requirements, d. The short period may be detrimental to international businesses willingness to travel and engage with Australia. 2. The suggested 4 questions of the Factor Test are too simple and likely to adversely impact anyone that is innocently visiting, investing or interacting with Australia economically. 3. Against the intent of this change it is likely that any genuine Australian citizen non resident, would have 2 of the test questions

Petition Request

We therefore ask the House to prior to the final drafting and presentation of law on this matter, the Parliament consider and implement that: 1. The 45 day test be extended to 90 days and that; a. Any period of forced Quarantine not be included in the day count, and b. Any period of genuine required work/business not be included in the day count to continue to encourage ongoing economic activity and international trade. 2. The 4 point test be expanded to allow more appropriate assessment and consider using a weighted average point score based on responses to provide a more fair, relevant and understandable method of assessment.

Closing date for signatures: 12 August 2021 11:59 PM (AEST)

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