Australia’s new tax ruling, TR 2023/1, has added complexity to determining tax residency for Australian expats living abroad. The ruling introduces three tests: Domicile test, Resides test, and 183-day test. If an individual meets any of these tests, they will be considered a resident in Australia for tax purposes.

While Australia hasn’t officially adopted a citizen-based tax system, this ruling makes it more challenging for Australian citizens living abroad or those with tax residency in another country to cut their tax liabilities in Australia.