Frogman, funny how you guys can't see the contradiction in what you are saying (and what the Aus govt is saying). The Gov says that cancelling 23AG is going to 'cost them more than they raise'... Sure, but they STILL went ahead and changed the tax system in a major way (..and frankly, I don't believe their claims about it costing them more than they raise). If they made this change, then what is going to stop them from making other major changes? Also, nothing difficult in making the change. The Govt only has to enact a law making it illegal to not declare overseas income, and pay tax on same....as per the USA. I am at a loss why you seem to think that this is somehow an impossiblilty...?? It is all quite simple and easily enforced in the US. I can't see why it couldn't also be in AUS.
The other reason you are ignoring is in respect of percieved 'fairness'. If they raise taxes on Aus residents, they would need to show that Australians who have left are not exempt, otherwise it creates an implied persuasion to leave Aus to escape paying one's 'fair share'. Eventually governments will see that they must include all their citizens in the tax net so as to not be favouring those who pay nothing, but still return to Oz later in life with their 'booty'...
