Private ruling: Residency
Date of advice: 13 December 2023
Published: 5 February 2024
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you an Australian resident for taxation purposes? | A1: No.

Relevant facts and circumstances: Your country of origin is COUNTRY A. You are only a citizen of COUNTRY A. You were granted an Australian student visa. You have a COUNTRY B research visa. Prior to your arrival in Australia, you lived in COUNTRY B for several years but maintained your residency in COUNTRY A. You travelled to Australia to start your university course. You were awarded the two scholarships from your university in Australia. You do not intend on staying in Australia once your studies are completed. You are not currently employed in Australia. You worked for COUNTRY A employer for several years. To support yourself financially you intend to continue your employment with your employer as a sole trader due to certain employment restrictions. You do not have any assets in Australia other than a bank account to receive your scholarship payments. From your arrival in Australia to your departure several months later, you have stayed in several different short-term rentals for several weeks at a time. You do not have any dependents living in Australia. You are not eligible to contribute to the PSS or the CSS Commonwealth superannuation fund.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1)

Reasons for decision: Summary: For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests. • The resides test (otherwise known as the ordinary concepts test) • The domicile test • The 183 day test • The Commonwealth superannuation fund test We have considered your circumstances, and conclude that you will not be a resident of Australia for the relevant financial years as follows: You will not be a resident of Australia according to the resides test. You will not meet the domicile test because your domicile is not in Australia. You do not meet the 183 day test because you will not be in Australia for 183 days or more during the relevant income years. You do not fulfil the requirements of the Commonwealth Superannuation test. | Detailed Reasoning - More information: Being in receipt of a scholarship or receiving an ABN and starting a sole trader business does not automatically lead to you being considered an Australia tax resident. Acquiring an ABN carries certain obligations, including the requirement to report income earned under the ABN and to lodge an Australian income tax return at the end of each financial year. For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .