Private ruling: Residency
Date of advice: 29 November 2024
Published: 13 January 2025
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You were renting a property and after giving up this lease you lived with your parent. You and your family are going overseas in the near future for a holiday and be digital nomads. You intend on returning to Australia in a future year. You will visit several countries. You will stay in short term accommodation in each country. You will enter Country Z on a multi-entry visa allowing you to stay for several months at a time. All other countries you will visit you will enter on a visitor's visa. You are not able to remain permanently in any country you visit. You will continue to work for your Australian employer remotely while overseas. You work for Employer Z on a permanent full-time basis with superannuation being paid. Your spouse will continue to work for their Australian employer remotely while overseas. Your spouse works for Employer Y on a permanent full-time basis. Your children are enrolled in an Australian-based homeschooling program. You have investments in a Country Y based company. You have personal and household items in Australia along with bank accounts. You have your personal and household items in storage. You have family and friends in Australia. You have no sporting or social connections overseas. You are not removing your name from the electoral role. You will not be paying tax in any other country. You have a self-managed super fund. You do not intend on leaving Australia on a permanent basis. Neither you nor your spouse are eligible to contribute to the PSS or the CSS Commonwealth Government Superannuation 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, 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 be a resident of Australia for tax purposes for the relevant income years as follows: • You are a resident of Australia according to the resides test. • You are a resident under the domicile test as your domicile of origin is Australia and you have not acquired a domicile of choice overseas. Furthermore, the Commissioner is not satisfied that your permanent place of abode is outside Australia because: - you have not definitely abandoned your residency in Australia as you will only be staying for short stays in each country while you are overseas and - you do not intend to commence living permanently overseas. • You meet the 183-day test. • You do not fulfil the requirements of the Commonwealth superannuation fund test. In summary, you will be a resident of Australia for tax purposes for the relevant income years. For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .