New Tax Residency Rules Australia: 2026 Changes and What it Means for You
Australia’s Tax Residency Rules are Changing Australia is introducing new tax residency rules for all Australian expats from 2026 with tougher day-counting tests and exit requirements. The Australian Treasury has proposed major changes that will change how residency status is determined for tax purposes. We cover the 183-day test, 45-day thresholds, four-factor assessments, new pathways to cease Australian tax residency, implementation timelines, practical implications and action plans for Australian expats living overseas. How the New Tax Residency Rules Australia Work (2026 Update) New Tax Residency Rules Australia Overview The new framework follows a step-by-step process recommended by the Board of Taxation: Primary Test: Based on physical presence in Australia Secondary Assessments: Clear residency criteria if primary test doesn’t apply Under this proposal, there will be a new primary bright line test where an individual would be an Australian resident if they are physically pres...