Private ruling: Residency
Date of advice: 17 November 2025
Published: 5 January 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Are you a resident of Australia for the income year ending 30 June 20YY for the purposes of section 6(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes, in respect of the income year ending 30 June 20YY the taxpayer will be considered a resident of Australia for tax purpose.

Relevant facts and circumstances: You were born in Country A. You were born on DD MM 19YY. You are a citizen of Country A. You were a temporary resident of Country B prior to your move to Australia. In your incoming passenger card whilst entering Australia, you filled country of residence as Country B. You also visited Australia between DD MM 20YY and DD MM 20YY. You resided in Country A until MM 20YY. You resided in Country B between MM 20YY- MM 20YY. Australia You arrived in Australia with your spouse and two children on DD MM 20YY. You arrived in Australia on a valid visitor visa. Your visa was valid until DD MM 20YY. DD MM 20YY, you lodged a visa application. You were granted a Visa on DD MM 20YY. The Visa is valid until DD MM 20YY. The travel facility on the Visa is valid until DD MM 20YY. On expiry of the travel facility, the Visa will remain in effect but without the right to travel outside Australia. Your spouse, and your children, reside in Australia on their own Visa. Child A was born on DD MM 20YY is XX years old. Child B was born on DD MM 20YY is XX years old. Your spouse is permitted to work and study in Australia. Your children are permitted to study in Australia. You are also eligible for Medicare. At present your children are attending school in Australia. Your Intention is to stay in Australia, while awaiting decision on a more permanent Visa. You anticipate travelling abroad for work and pleasure for XX-to-XX days a year. At this point in time, you do not hold employment within Australia. You would eventually like to pursue employment in Australia. You reside along with your family reside in a residence in State A in Australia. At present you have a XX-month rental agreement. You currently have no professional, social or sporting connection in Australia. In Australia you have an everyday bank account and a foreign currency account with an Australian Financial Institution. You have bought a motor vehicle in Australia. Travel Prior to your move to Australia, you were renting an apartment in Country B. You make short-term business trips to countries overseas. Country B You resided in Country B on several consecutive temporary residence permits from around MM 20YY- MM 20YY. Your current Country B Visa is valid until DD MM 20YY. You hold a Country B driving license. Your Country B Visa did not allow yourself or your wife to work in Country B. You also have a current account in Country B. Since moving to Australia, you have been transferring funds from Country B into your Australian bank account. Eventually, you intend to close all bank accounts in Country B. Your rental agreement for the apartment in Country B has been terminated. Prior to your move to Country B, you along with your family resided in Country A in an apartment that belonged to your parent. In MM 20YY you lodged your income tax return in Country B for the first quarter, declaring your salary from your employment in the Country A company. Country A You owned X Investment apartments in Country A. You sold the apartments in MM 20YY. You have retained your time deposit accounts with a bank in Country A. You have federal loan bonds in Country A. At presently you are remotely employed with Country A businesses. You have been working with the businesses since MM 20YY. The X businesses together form a single business group. Country C You have current deposit and term deposit accounts in Country C. You have an accounts receivable account in Country C from the sale of XX% shareholding in a Country C business in MM 20YY.

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

Reasons for decision: Detailed Reasoning - Detailed reasoning: Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: • the resides test (also referred to as the ordinary concepts test) • the domicile test • the 183-day test, and • the Commonwealth superannuation fund test. The resides test is the primary test for deciding the residency status of an individual. This test considers whether an individual resides in Australia according to the ordinary meaning of the word 'resides'. 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 (the domicile test, 183-day test and Commonwealth superannuation fund test). Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals. We have considered the statutory tests listed above in relation to your situation as follows: | Detailed Reasoning - The resides test: The ordinary meaning of the word 'reside' has been expressed as 'to dwell permanently or for a considerable time, to have one's settled or usual abode, to live, in or at a particular place': See Commissioner of Taxation v Miller (1946) 73 CLR 93 at 99 per Latham CJ, citing Viscount Cave LC in Levene v Inland Revenue Commissioners [1928] AC 217 at 222, citing the Oxford English Dictionary. Likewise, the Macquarie Dictionary defines 'reside' as 'to dwell permanently or for a considerable time; have one's abode for a time'. The observations contained in the case of Hafza v Director-General of Social Security (1985) 6 FCR 444 are also important: Physical presence and intention will coincide for most of the time. But few people are always at home. Once a person has established a home in a particular place - even involuntarily: see Commissioners of Inland Revenue v Lysaght [1928] AC 234 at 248; and Keil v Keil [1947] VLR 383 - a person does not necessarily cease to be resident there because he or she is physically absent. The test is whether the person has retained a continuity of association with the place - Levene v Inland Revenue Commissioners [1928] AC 217 at 225 and Judd v Judd (1957) 75 WN (NSW) 147 at 149 - together with an intention to return to that place and an attitude that that place remains "home": see Norman v Norman (No 3) (1969) 16 FLR 231 at 235... here the general concept is applicable, it is obvious that, as residence of a place in which a person is not physically present depends upon an intention to return and to continue to treat that place as "home", a change of intention may be decisive of the question whether residence in a particular place has been maintained. The Commissioner considers the following factors in relation to whether a taxpayer is a resident under the 'resides' test: • 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. • It is important to note that no one single factor is decisive, and the weight given to each factor depends on each individual's circumstances. Because the resides test is about whether an individual resides in Australia, the factors focus on the individual's connection to Australia. Having a connection with another country, or being a resident of another country, does not diminish any connection to Australia. The ordinary meaning of reside does not require an individual to have a principle or usual place of residence in Australia. | Detailed Reasoning - Application to your situation: You will be a resident of Australia under the resides test for the period 20YY-20YY based on the following: • You have resided in Australia since MM 20YY. • You intend to reside in Australia and make this your home. • You intend in the future to work for an Australian company and be employed and remain in Australia. • DD MM 20YY, you lodged a visa application and was granted a Visa. • You were granted a Visa on DD MM 20YY. • The Visa is valid until DD MM 20YY. • The travel facility on the Visa is valid until DD MM 20YY. • On expiry of the travel facility, the Visa will remain in effect but without the right to travel outside Australia. • Your intention is to stay in Australia, while awaiting decision on the further Visa. • At present you have relatives, bank accounts and resources predominantly in Country A and Country B. • You hold a temporary Visa permit in Country B. • You do not intend to reside in Country B or have any rental, investment or bank accounts in Country B. • You reside with your family (spouse and children) in Australia and have a lease of over XX months. • You intend to spend majority of your time in Australia and have so until now. • Your children are enrolled for school in Australia. They intend to continue their schooling in Australia. Your spouse has residing and working rights in Australia, and they intend to work and make a living in Australia. • You are eligible for Medicare. • You have purchased a motor vehicle. • You have a bank account in Australia The Commissioner is satisfied that you are residing in Australia according to ordinary concepts. Although the law only requires you to be considered a resident under one test, for completeness the other tests are also considered. | Detailed Reasoning - Domicile test: Under the domicile test, you are a resident of Australia if your domicile is in Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. | Detailed Reasoning - Domicile: Whether your domicile is in Australia is determined by the Domicile Act 1982 and the common law rules on domicile. Your domicile is your domicile of origin (usually the domicile of your father at the time of your birth) unless you have a domicile of dependence or have acquired a domicile of choice elsewhere. To acquire a domicile of choice of a particular country you must be lawfully present there and hold the positive intention to make that country your home indefinitely. Your domicile continues until you acquire a different domicile. Whether your domicile has changed depends on an objective consideration of all relevant facts. | Detailed Reasoning - Application to your situation: In your case, you were born in Country A and your domicile of origin is Country A. You are a citizen of Country A. You travelled to Australia on DD MM 20YY on a temporary visa, following which you applied for a further visa. You now reside in Australia on a Visa whilst awaiting a decision on your further Visa. You and your family have leased a property for XX months. It is considered that at this stage you have not yet abandoned your domicile of origin in Country A and acquired a domicile of choice in Australia. Therefor you will not be considered a resident of Australia under the Domicile test for the 20YY income year. | Detailed Reasoning - 183-day test: Where a person is present in Australia for 183 days or more during the year of income the person will be a resident, unless the Commissioner is satisfied that both: • the person's usual place of abode is outside Australia, and • the person does not intend to take up residence in Australia. | Detailed Reasoning - Application to your situation: You have not been present in Australia for 183 days or more during the 20YY-20YY income year. Therefore, you are currently not a resident under the 183-day test for the 20YY year based on 183-day test. | Detailed Reasoning - 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 situation: You are not a member on behalf of whom contributions are being made to the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) or a spouse of such a person, or a child under 16 of such a person. Therefore, you are not a resident under this test. | Detailed Reasoning - Conclusion: As you satisfy one of the four tests for residency, you will be considered a resident of Australia for tax purpose for the year ending DD MM 20YY under the resides test

Are you a resident of Australia for the income year ending 30 June 2026 for the purposes of section 6(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | Answer: Yes. You will be considered an Australian resident for tax purposes for the 20YY income year.