Private ruling: Residency tests
Date of advice: 19 December 2025
Published: 9 February 2026
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Are you a tax resident of Australia pursuant to subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) from DD MM 20XX? | A1: Yes. | Q2: Since your arrival have you been a Temporary Resident of Australia pursuant to section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A2: Yes.

Relevant facts and circumstances: You were born in Country A. You are a citizen of solely Country B. Your parents reside in Country B. You do not own any real estate properties inside or outside of Australia. Since XX XXXX 20XX, you have been in a relationship with your de facto partner Person A. You have no dependants. On XX XXXX 20XX, you were granted a working holiday (subclass 417) visa. This visa was valid XX XXXX 20XX. Your subclass 417 visa had the following restrictive conditions: • Employer work limitation (visa condition 8547). • Study limitation (visa condition 8548). On XX XXXX 20XX, your partner was granted skills in demand (core skills) (subclass 482) visa. Prior to XX XXXX 20XX, you were employed full-time in Country B. On XX XXXX 20XX, you became self-employed as a freelance journalist for exclusively Country B clients. Your work allows you to work remotely anywhere in the world. On XX XXXX 20XX, you travelled to Australia. For a few months, you stayed in temporary accommodation while travelling Australia. You predominantly travelled alone while your partner remained at their place of employment under their subclass 482 visa and only joined you occasionally during periods of their annual leave. Your partner cannot work remotely and has a physical office that they must attend. On XX XXXX 20XX, you were granted your second subclass 417 visa. This visa was valid until XX XXXX 20XX. During the 20XX income year, you had casual employment on a farm in Australia. Since XX XXXX 20XX, you hold a joint lease with your partner at the rental property situated at Property A. You have been renewing the lease every XX months. In the 20XX income year, you visited other locations in Australia. In XX 20XX, your partner's employer offered an extension to their subclass 482 visa. You stated this development shifted your original plans and led you to decide to remain in Australia beyond your current visa by applying for inclusion on your partner's renewed visa. Since XX XXXX 20XX, you are no longer considered a tax resident of Country B. In XX 20XX, you applied to be included on your partner's skills in demand (core skills) (subclass 482) visa, which was connected to their employment. On XX XXXX 20XX, you were granted the subclass 482 visa as the secondary applicant. Your subclass 482 visa had the following restrictive conditions that you maintain health insurance (visa condition 8501). For a period, you travelled overseas and to Country B for a holiday. On XX XXXX 20XX, you applied for permanent residency in Australia. This application is still pending. For a period, you will travel to Country B to visit your family. When travelling to Country B, you will stay with your parents. Their property is always available to you to stay when travelling. You have private health insurance in Australia. You have an Australian and Country B driver's license. You have an Australian and Country B bank accounts. You have not applied for Australian citizenship. You have not maintained any professional, social or sporting connections in Country B. You have applied for an Australian Business Number (ABN). You and your spouse are not Commonwealth of Australia Government employee for superannuation purposes. You and your spouse are not members of the Public Sector Superannuation Scheme (PSS). You and your spouse are not an eligible employee in respect of the Commonwealth Superannuation Scheme (CSS). In the income years ended 30 June 20XX and 20XX, you were physically present in Australia for more than 183 days. You will be physically present in Australia for more than 183-days during the 20XX income year

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

Reasons for decision: Summary: You satisfy the resides test and the 183-day test of residency and so are a resident of Australia for income tax purposes from 13 April 2024. | 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 are a resident of Australia under the resides test from XX XXXX 20XX based on the following: • period of physical presence in Australia ­ In the income years 20XX and 20XX, you haven been physically present in Australia for more than 183 days. ­ You will be physically present in Australia for more than 183-days during the 2026 income year. • intention or purpose of presence ­ Prior to XX XXXX 20XX, you were traveling and exploring Australia under subclass 417 visa. ­ From XX XXXX 20XX, you committed to a lease with your partner. ­ You have since applied for permanent residency and an ABN. ­ You have private health insurance in Australia. • behaviour while in Australia ­ Prior to XX XXXX 20XX, travelling and exploring Australia. ­ Since XX XXXX 20XX, you have an ongoing lease which you continue to renew at the same property. ­ Applied for permanent residency and ABN. ­ Changed visas. • family and business/employment ties. ­ You parents live in Country B. ­ Your partner lives in Australia in connection with their employment visa. ­ You have a joint lease with your partner. • maintenance and location of assets ­ You have an Australian and Country B bank accounts. ­ You do not own any real estate properties inside or outside of Australia. • social and living arrangements. ­ You live with your partner. ­ You have not maintained any professional, social or sporting connections in Country B. 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 was Country A. Your domicile most likely changed by choice to Country B upon you and your parents moving there. You travelled to Australia on XX XXXX 20XX and have not applied to become an Australian citizen or permanent resident. It is considered that you did not abandon your domicile in Country B and acquire a domicile of choice in Australia. You are not entitled to reside in Australia indefinitely and while living in Australia, you have only held temporary work permits. Therefore, you are not a resident of Australia under the domicile test. | 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 been in Australia for 183 days or more in the income years ended 30 June 20XX, 20XX, and will be during the 20XX income year. 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: Period prior to XX XXXX 20XX The Commissioner is satisfied that your usual place of abode was outside Australia for the relevant period based on the following: • You were travelling around Australia. • You did not develop strong connections in Australia for this period. Period after XX XXXX 20XX The Commissioner is not satisfied that your usual place of abode was outside Australia for the relevant period based on the following: • On XX XXXX 20XX, you signed a joint lease with your partner and committed to a location. Since this date you have renewed the same lease multiple times. | Detailed Reasoning - Intention to take up residency: To determine whether you intend to take up residence in Australia, we look at evidence of relevant objective facts. 'Intend to take up residency' does not merely mean intend to stay for a long time. It means intending to live here in such a manner that you would reside here. | Detailed Reasoning - Application to your situation: The Commissioner is satisfied that you did intend to take up residence in Australia for the relevant income years because: • From XX XXXX 20XX, you committed to a location in Australia. • In XXXX 20XX, you applied to be included on your partner's subclass 482 visa. • On XX XXXX 20XX, you applied for permanent residency in Australia. This application is still pending. | 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: You satisfy the resides test and the 183-day test of residency and so are a resident of Australia for income tax purposes from XX XXXX 20XX. | Summary: You are a temporary resident as defined in section 995-1 of the ITAA 1997 from the date of arrival until you are granted a permanent resident visa or Australian citizenship. | Detailed Reasoning - Detailed reasoning: Section 995-1 of the ITAA 1997 states that you are a temporary resident if: • you hold a temporary visa granted under the Migration Act 1958 ; • you are not an Australian resident within the meaning of the Social Security Act 1991 ; and • your spouse is not an Australian resident within the meaning of the Social Security Act 1991 . Under the Social Security Act 1991 , an Australian resident is generally a person who resides in Australia and is either an Australian citizen or the holder of a permanent resident visa. Subdivision 768-R of the ITAA 1997 provides that where you are a resident of Australia for taxation purposes and also meet the requirements to be a temporary resident of Australia you will be subject to the following temporary resident rules: • Any income you earn from an overseas source will not be taxed in Australia except income earned from employment performed overseas for short periods while you are a temporary resident. • Any capital gain you make from a capital gains tax event that relates to an asset that is not taxable Australian property will not be taxed in Australia. • Special rules apply to capital gains on shares and rights acquired under employee share schemes. | Detailed Reasoning - Application to your circumstances: In your case, from the date of your arrival in Australia, you and your partner were both not an Australian resident within the meaning of the Social Security Act 1991 as you were not Australian citizens, the holder of a permanent visa or a protected special category visa holder. As such, you are a temporary resident as defined in section 995-1 of the ITAA 1997 from the date of arrival until you are granted a permanent resident visa or Australian citizenship.