Following a period level of ligation arising from concentrated Australian Taxation Office compliance programs a non-statutory advisory body charged improving the design of Australia’s taxation laws and their operation (the Board of Taxation) commenced a self-initiated High Wealth Individuals and Residency Review in May 2016. Following an on-going consultation process, renamed Review of the Income Tax Residency Rules for Individuals, a report containing the Board’s initial recommendations was submitted to the Australian Government in August 2017, with a final report at the request of the Government submitted in April 2019.

With the release that Final Report on 12 December 2019 the true extent of the Board’s recommendation for change has been revealed. They encompass a major expansion of Australia’s jurisdictional claim. This paper:

• first explores the similarities, differences and short comings of the Australian and New Zealand individual   tax residency rules (through the prisms of equity, simplicity and efficiency   (integrity)) highlighting, why Australia’s rules are suddenly facing major   reforms while the New Zealand’s rules continue to serve their purpose; and
• evaluates the Board of Taxation’s   recommendations in order to determine whether the proposed Australian changes   are influenced as claimed or are they merely another Australian policy frolic.