Private ruling: Residency of Australia for taxation purposes
Date of advice: 4 November 2025
Published: 22 December 2025
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: No.

Relevant facts and circumstances: You were born in Country Z. You are a citizen of Country Z. You have been a permanent resident of Australia for a number of years. You have lived and worked in Australia for a number of years. You and your family left Australia recently to live and work in Country Z. Your spouse is a citizen of Country Z. Your children are dual Australian and Country Z citizens. You do not have any family remaining in Australia. You have an XX business in Country Z. Your employment and business activities are conducted exclusively in Country Z. You cancelled your GST registration in Australia and registered as a sole trader with the Country Z authorities. You hold Country Z professional indemnity and public liability insurance, with all business income earned in Country Z. Your spouse is not working in the XX. Your children attend school and University in Country Z. You and your spouse are renting a property in Country Z which has a 12 month lease with the option to renew. The lease of the rental property is in your and your spouse's names. You have integrated into the Country Z community and intend to remain overseas for the foreseeable future, with an initial period of a few years. You do not intend on being in Australia for more than 183 days in any financial year. Any trips made in the future back to Australia will be short in length. All personal household effects and vehicles were sold prior to departure. You have rented your home out in Australia to a third party at commercial rates. You and your spouse are not eligible to contribute to the PSS or the CSS super funds.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 section 995-1

Reasons for decision: Summary: For tax purposes, whether you are a resident of Australia is defined by subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The definition has four tests to determine your residency for income tax purposes. These tests are: • the resides test • the domicile tests • the 183-day test, and • the Commonwealth superannuation fund test. It is sufficient for you to be a resident under one of these tests to be a resident for tax purposes. Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . | Detailed Reasoning - The resides test: The resides test is the primary test of tax residency for an individual. If you reside in Australia according to the ordinary meaning of the word resides, you are considered an Australian resident for tax purposes. Some of the factors that can be used to determine whether you reside in Australia include: • period of physical presence in Australia • intention or purpose of presence • behaviour while in Australia • family and business/employment ties • maintenance and location of assets • social and living arrangements. No single factor is decisive, and the weight given to each factor depends on your specific circumstances. Where an individual does not reside in Australia according to ordinary concepts, they will still be an Australian resident if they meet the conditions of one of the other tests. | Detailed Reasoning - The domicile tests: Under the domicile test, if your domicile is in Australia, you are a resident of Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. Whether your domicile is Australia is determined by the Domicile Act 1982 and the common law rules on domicile. For example, you may have a domicile by origin (where you were born) or by choice (where you have changed your home with the intent of making it permanent). Whether your permanent place of abode is outside Australia is a question of fact to be determined considering all the facts and circumstances of each case. Key considerations in determining whether you have your permanent place of abode outside Australia are: • whether you have abandoned, in a permanent way, living in Australia • length of overseas stay • nature of accommodation, and • durability of association | Detailed Reasoning - The 183-day test: Under the 183-day test, if you are present in Australia for 183 days or more during the income year, you will be a resident, unless the Commissioner is satisfied that both: • Your usual place of abode is outside Australia, and • You do not intend to take up residence in Australia. The question of usual place of abode is a question of fact and generally means the abode customarily or commonly used by you when are physically in a country. | Detailed Reasoning - The Commonwealth superannuation test: An individual is a resident of Australia if they are either a member of the superannuation scheme established by deed under the Superannuation Act 1990 or an eligible employee for the purposes of the Superannuation Act 1976 , or they are the spouse, or the child under 16, of such a person. | Detailed Reasoning - Application to your circumstances: We have considered each of the statutory tests listed above in relation to your particular facts and circumstances. We conclude that for the relevant income year you are not a resident of Australia. Considering your individual circumstances, we have concluded that you are not a resident of Australia according to ordinary concepts. You have left Australia after a number of years of living and working in Australia as a permanent resident. You and your family have gone to Country Z to live and work for at least a few years. You are renting your home out in Australia, and you sold most of your belongings in Australia prior to moving to Country Z. Your Domicile is in Country Z, and you have a permanent place of abode in Country Z. You are not a resident under the 183 day test as you will not be in Australia for more than 183 days in the relevant income year. You do not intend on returning to Australia in the near future. You do not fulfil the requirements of the Commonwealth Superannuation test and are therefore not a resident under this test. You are not a resident of Australia for taxation purposes under the Resides, Domicile, 183-day test or Superannuation tests for the relevant income year.