Australia Treasury is seeking submissions from stakeholders on Australia’s Tax Treaties. Deadline 31 October. More details at:
Fix the Tax Treaty: Treasury Tax Treaty Consultation
Fix the Tax Treaty: Treasury Submission
The Australia Treasury site;
and in this article by Helen Burggraf in AmericanExpatFinance.
Thanks, JC, for informing us of this.
Just a heads-up. If the new treaty is to be based on the 2016 US ‘model’ tax treaty, note a re-framing of part of the saving clause. From the current treaty, Article 1:
https://www.irs.gov/pub/irs-trty/aus.pdf
(3) Notwithstanding any provision of this Convention, except paragraph (4) of this Article, a
Contracting State may tax its residents (as determined under Article 4 (Residence)) and individuals
electing under its domestic law to be taxed as residents of that state, and by reason of citizenship may
tax its citizens, as if this Convention had not entered into force. For this purpose, the term “citizen” shall,
with respect to United States source income according to United States law relating to United States
tax, include a former citizen whose loss of citizenship had as one of its principal purposes the avoidance
of tax, but only for a period of 10 years following such loss.
From the 2016 ‘model’ treaty, Article 1:
https://www.treasury.gov/resource-center/tax-policy/treaties/documents/treaty-us%20model-2016.pdf
4. Except to the extent provided in paragraph 5 of this Article, this Convention shall not
affect the taxation by a Contracting State of its residents (as determined under Article 4
(Resident)) and its citizens. Notwithstanding the other provisions of this Convention, a former
citizen or former long-term resident of a Contracting State may be taxed in accordance with the
laws of that Contracting State.
Note that the restriction of this to “only for a period of 10 years following such loss (of citizenship)” is not present in the 2016 ‘model’ treaty. Neither is the “with respect to United States source income” rider. Potentially ominous.
Thanks.