Proposed Australian Tax Residency Rule Changes – Singapore

Proposed Australian Tax Residency Rule – Singapore.

Northland Group hosted a webinar with Tristian Perry, Head of Tax – Australia at Select Investors Australia Singapore, discussing proposed changes to the Australian tax residency rules and impacts on Australian expats living in Singapore.

In May 2021, the Australian federal government proposed to update the Australian Residency Criteria. The proposed changes look quite simple and easy to understand, however, the devil is in the detail.

The proposed changes include a two-step model to determine if you are considered an Australian resident for tax purposes with the bright line test and the factor test.

Bright line test – if you spend 183 days or more in an income year in Australia, you are considered tax resident; or

Factor test – if you spend between 45 and 182 days in an income year in Australia, you are considered a tax resident if you meet 2 of 4 factors, summarised as:

1.     Right to reside permanently in Australia

2.     Australian accommodation

3.     Australian family

4.     Australian economic interest

Should these proposed changes go ahead many Australian expats may consider making changes to their assets in Australia or time they spend in Australia (for work or personal travel) to continue with their current tax residency status.

Take a look at the webinar for more on the proposed bright line test, four factor tests, double tax agreement and general questions and answers Australian expat should be aware of, particularly if living in Singapore (Webinar 29 July 2021) or contact us.

Note: This information and the webinar is general in nature and does not constitute advice. The information does not take into account your objectives, financial situation or needs and you should seek independent advice to see if the solution is appropriate for you.

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