Private ruling: Residency - departing Australia
Date of advice: 14 April 2026
Published: 29 June 2026
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Are you a resident of Australia for tax purposes from departure date A to DD MM YYYY? | A1: Yes. | Q2: Are you a resident of Australia for tax purposes from date B? | A2: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You have a spouse, Person A. You and Person A have XX dependent children (your family). You have another child, with your ex-spouse who lives with them in Australia You will pay monthly child support for your child until they turn 18 years old. You own an Australian bank account and Australian shares. In MM YYYY, you jointly purchased the dwelling located at property A. You have a mortgage over property A. You do not currently own any foreign properties. On DD MM YYYY, you were offered employment contract as a marketing executive with Employer A in Country A. The contract covered the period until DD MM YYYY, where it would then be automatically renewed under the same terms and conditions unless either party notified the other in writing. You received an allowance for accommodation and transport as part of your contract. Prior to DD MM YYYY, you were employed in Australia. On departure date A, you to move to Country A. On DD MM YYYY, you commenced employed with Employer A in Country A. On DD MM YYYY, you were granted your ID card in Country A which expires on DD MM YYYY. Your visa is linked to your employment with Employer A and will be auto renewed when it expires. You work in construction machinery technology sales and support. Your employment allows you to work from home in certain circumstances. You are a tax resident of Country A as a requirement for your job. The reason Person A and your dependent children did not travel with you was because of the following reasons: • One of the children has not had their vaccinations yet as a newborn. • One of the children needed to be in school without a gap. • The rest of your family were waiting on visa approval. Since arriving in Country A, you have been travelling the region as part of your employment onboarding staying in hotels. Your intention is to enter a rental agreement or purchase a property in Country A to use as your main residence. You opened a bank account in Country A. In MM YYYY, you submitted the documents for the visa process for your family to Country A. On DD MM YYYY, Person A resigned from their Australian employment while on maternity leave. On date B, your family will depart Australia and move to Country A. After date B, property A will be rented to an unrelated party via long term leases. After date B, you will cancel your Australian private health insurance. You have private health insurance in Country A. You child with your ex-spouse will remain in Australia. In MM YYYY, one of your dependent children will start school in Country A. You and your family intend to develop social and sporting connections in Country A. You informed the Australian Electoral Commission that you have permanently departed Australia and were removed from the roll. You intend to advice Australian financial institutions including any Australian companies with whom you have investments with that you are a foreign resident. You will not be physically present in Australia for more than 183 days in the income years ended 30 June 20YY, and 20YY. You will travel to Australia in the income years ended 30 June 20YY, and 20YY for less than XX weeks a year visiting family and friends. When travelling to Australia in the future it will be for a holiday and you will stay with either your own or Person A's parents. You will not work within Australia. You and your spouse are not a member of the Public Sector Superannuation Scheme (PSS) which was established under the Superannuation Act 1990 . You and your spouse are not an eligible employee in respect of the Commonwealth Superannuation Scheme (CSS) which was established under the Superannuation Act 1976 .

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

Reasons for decision: Summary: Between departure date A and DD MM YYYY, you satisfy the resides, domicile and 183-day tests of residency and so are a resident of Australia for income tax purposes for this period. As you do not satisfy any of the four tests of residency, you are not a resident of Australia for income tax purposes from date B. | Detailed Reasoning - Overview of the law: 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 between departure date A and DD MM YYYY and a non-resident under this test from date B based on the following: • period of physical presence in Australia ­ On date A, you departed Australia. ­ You will travel to Australia in the income years ended 30 June 20YY, and 20YY for less than XX weeks a year visiting family and friends. ­ When travelling to Australia in the future it will be for a holiday and you will stay with either your own or Person A's parents. • intention or purpose of presence ­ You stated it is your intention to permanently depart Australia to live in Country A. • behaviour while in Australia ­ You informed the Australian Electoral Commission that you have permanently departed Australia and were removed from the roll. ­ Your family remains in Australia until departure date B. ­ After date B, you will cancel your Australian private health. ­ You have private health coverage in Country A. ­ You intend to advice Australian financial institutions including any Australian companies with whom you have investments with that you are a foreign resident. • family and business/employment ties ­ On date B, your family will depart Australia to live with you in Country A. ­ Your ex-spouse and the child you have together will remain in Australia. ­ You will pay monthly child support for your child in Australia until they turn 18 years old. ­ On DD MM YYYY, you commenced employment as a marketing executive with Employer A in Country A. ­ You cannot perform your current employment duties in Australia. ­ Your visa is tied to your employment. • maintenance and location of assets ­ You jointly own the dwelling located at property A. ­ You do not currently own any foreign properties. ­ You own an Australian bank account and Australian shares. • social and living arrangements. ­ As part of your onboarding process in Country A, you are travelling and do not currently have a fixed address. ­ You intend to enter a rental agreement or purchase a property in Country A for you and your family to reside in. This will be done prior to date B. ­ After date B, you will use property A as a rental property to produce income. | Detailed Reasoning - Between departure date A and DD MM YYYY: Although the law only requires you to be considered a resident under one test, for completeness the other tests are also considered. | Detailed Reasoning - From date B: You may still be an Australian resident if you meet the conditions of one of the other tests (the domicile test, 183 day test and Commonwealth superannuation fund test). | 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 Australia, and your domicile of origin is Australia. You are an Australian citizen. It is considered that you will not abandon your domicile of origin in Australia and acquire a domicile of choice in Country A. You are not entitled to reside in Country A indefinitely and while living in Country A, you hold an ID card linked to your employment which expires on DD MM YYYY. Therefore, your domicile is Australia. | Detailed Reasoning - Permanent place of abode: If you have an Australian domicile, you are an Australian resident unless the Commissioner is satisfied that your permanent place of abode is outside Australia. This is a question of fact to be determined in light of all the facts and circumstances of each case. 'Permanent' does not mean everlasting or forever, but it is to be distinguished from temporary or transitory. The phrase 'permanent place of abode' calls for a consideration of the physical surroundings in which you live, extending to a town or country. It does not extend to more than one country, or a region of the world. The Full Federal Court in Harding v Commissioner of Taxation [2019] FCA 29 held at paragraphs 36 and 40 that key considerations in determining whether a taxpayer has their permanent place of abode outside Australia are: • whether the taxpayer has definitely abandoned, in a permanent way, living in Australia • whether the taxpayer is living in a town, city, region or country in a permanent way. The Commissioner considers the following factors relevant to whether a taxpayer's permanent place of abode is outside Australia: • the intended and actual length of the taxpayer's stay in the overseas country • whether the taxpayer intended to stay in the overseas country only temporarily and then to move on to another country or to return to Australia at some definite point in time • whether the taxpayer has established a home (in the sense of dwelling place; a house or other shelter that is the fixed residence of a person, a family, or a household), outside Australia • whether any residence or place of abode exists in Australia or has been abandoned because of the overseas absence • the duration and continuity of the taxpayer's presence in the overseas country • the durability of association that the person has with a particular place in Australia, i.e. maintaining assets in Australia, informing government departments such as the Department of Social Security that he or she is leaving permanently and that family allowance payments should be stopped, place of education of the taxpayer's children, family ties and so on. As with the factors under the resides test, no one single factor is decisive, and the weight given to each factor depends on the individual circumstances. | Detailed Reasoning - Application to your situation: The Commissioner is satisfied that your permanent place of abode will be outside Australia from date B because: • Between date A and DD MM YYYY, your family are residing in property A, which you jointly own in Australia. • Prior to date B, property A is available to you. • After date B, property A will be rented to an unrelated party and not available for you to use. • You currently have not entered a long-term lease or purchased a property in Country A. However, your intention is to do this by date B. • Part of your onboarding process means you are travelling around Country A. Therefore, you will not be a resident of Australia under the domicile test from departure date B. You will be a resident under the domicile test for the period between departure date A and DD MM YYYY due to the availability of property A and the fact your family remains living there. | 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 - Income year ended 30 June 20YY: You have been in Australia for 183 days or more in the income year ended 30 June 20YY. Therefore, you will be a resident under this test unless the Commissioner is satisfied that your usual place of abode was outside Australia and you do not have an intention to take up residence in Australia. | Detailed Reasoning - Usual place of abode: In the context of the 183-day test, a person's usual place of abode is the place they usually live and can include a dwelling or a country. A person can have only one usual place of abode under the 183-day test. However, it is also possible that a person does not have a usual place of abode. This is the case for a person who merely travels through various countries without developing any strong connections. If a person has places of abode both inside and outside Australia, then a comparison may need to be made to determine which is their usual place of abode. When comparing two places of abode of a particular person, we will examine the nature and quality of the use which the person makes of each particular place of abode. It may then be possible to determine which is the usual one, as distinct from the other or others which, while they may be places of abode, are not properly characterised as the person's usual place of abode: Emmett J at [78] in Federal Commissioner of Taxation v Executors of the Estate of Subrahmanyam [2001] FCA 1836. | Detailed Reasoning - Application to your situation: The Commissioner is not satisfied that your usual place of abode was outside Australia for the year ended 30 June 20YY based in the following: • You lived in Australia for period A. • You own property A in Australia where your family lives for this period. • You currently do not have a fixed address in Country A. | Detailed Reasoning - Income years ended 30 June 20YY and 20YY: You will not be present in Australia for 183 days or more during the income years ended 30 June 20YY and 20YY. Therefore, you are not a resident under this 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: Between date A and DD MM YYYY, you satisfy the resides, domicile and 183-day tests of residency and so are a resident of Australia for income tax purposes for this period. As you do not satisfy any of the four tests of residency, you are not a resident of Australia for income tax purposes from date B .

Question 2: Are you a resident of Australia for tax purposes from departure date B?