After taking 2-22 in a one-dayer against New Zealand that same year, Black Caps coach John Bracewell and captain Daniel Vettori both questioned the legality of his unorthodox slinging style.
Tait responded by describing their comments "a disgrace" and offered to have his technique tested.
Tait was forced out of test and first-class cricket in 2008, worn down by injury, before becoming a successful Twenty20 specialist.
His most memorable outing against New Zealand came in a 2010 T20 encounter in Christchurch, when Brendon McCullum blitzed 115 runs off 56 balls, including a couple of audacious overhead sixes off Tait.
"I honestly wanted to play a couple more years, whether it was over in the UK or here," Tait told the Cricket Australia website. "The elbow has pretty much gone off a cliff now. It's done and dusted.
"I'm 34 -years-old and I suppose when you're not contributing on the field as much as you'd like to, it's time to finish up.
"Pretty much getting left out of the side or not being able to play because of my elbow, either way there's no point going on with it.
"I knew it was going to be difficult, getting older, to compete with the young blokes."