Private ruling: Residency of Australia for taxation purposes
Date of advice: 6 May 2025
Published: 7 July 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the Estate a resident trust for the earlier income years? | A1: Yes. | Q2: Is the Estate a non-resident trust for the later income years? | A2: Yes.

Relevant facts and circumstances: The deceased was an Australian resident for tax purposes. The deceased passed away several years ago, leaving a property in Australia. A Trustee had been acting as the Financial Manager of the deceased prior to the deceased's death, and continued to manage financial matters, pay expenses, etc on behalf of the Estate. A few years after the date of death, the Court appointed Individual 1 as Administrator of the Estate of the deceased. Individual 1 is a non-resident of Australia for tax purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 95

Reasons for decision: Summary: Section 95(2) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a trust estate shall be taken to be a resident trust estate in relation to a year of income if: a) a trustee of the trust estate was a resident at any time during the year of income; or b) the central management and control of the trust estate was in Australia at any time during the year income. A Trustee was managing the estate from the date of the deceased's death. The Trustee managed the estate for the income years immediately after the date of death. As the trustee of the trust estate was a resident and the central management and control of the estate was in Australia for those income years, the estate was a resident of Australia for the relevant income years. The current trustee of the deceased estate, Individual 1, is not an Australian resident for taxation purposes. Individual 1 lives outside Australia and therefore the management and control of the deceased's estate is now outside Australia. Therefore, the deceased estate is not an Australian resident for taxation purposes for the later income years.