Private ruling: Residency
Date of advice: 22 August 2024
Published: 30 September 2024
Ruling period: Year ended XX XXXX 20YY
Date scheme commenced: XX XXXX 20YY

Ruling: Q1: Are we considered Australian tax residents? | A1: Yes. Under the law, meeting a single test suffices for being deemed a tax resident. In your case, you have satisfied two of the tests. You are considered a resident for tax purposes of Australia.

Relevant facts and circumstances: You were born in Australia and are an Australian citizen. You sold certain household effects and moved others in Australian storage facilities. You were both in Australia until you sold your Australian property and departed to Country A in XXXX 20YY. You have moved to Country B and will remain there until XXXX 20YY. Your stated purpose of travel is holiday and recreation. Your children and spouse are accompanying you on your holiday. You are currently in Country B under a visa. You are currently living in a short-term rental in Country B. You have no lease agreement; it is an informal agreement renewed monthly through payments to the owner. You will not apply for citizenship or permanent residency in Country B. You are uncertain if you are tax residents of Country B. You will return to Australia by XXXX 20YY and stay until XXXX 20YY. You will return to Country A around XXXX 20YY and continue your travels until XXXX 20YY. After this trip to Country A, you will return to Australia permanently. Person 1 has connections to Australia through both social groups based on friendships, exercise groups, parenting groups and other child related activities. Person 2 played sport in Australia all his life and has many sporting connections to Australia. Person 2 is also a director of two Australian based companies providing various professional connections. You jointly own an account with Country B financial institution. Your Australian assets include: • Multiple bank accounts with Australian financial Institutions • Multiple businesses • Vehicles • Shares and other investments. • Family investment trust Your mailing address is an Australian address. When completing incoming and outgoing passenger cards you state you are an Australian resident and that your address is an Australian address. You receive no income from outside of Australia. You have not advised Australian financial institutions to deduct withholding tax as a non-resident. You are not a member of the Public Sector Superannuation Scheme (PSS) or Commonwealth Superannuation Scheme (CSS).

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(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 are a resident of Australia for the 20YY income year, as follows: • You are a resident of Australia according to the resides test. • You do meet the domicile test because your domicile is in Australia, and the Commissioner is not satisfied that your permanent place of abode is outside Australia. • You will not meet the 183 day test because you will not be in Australia for 183 days or more during the 20YY income year. • You do not fulfill the requirements of the Commonwealth Superannuation test. | Detailed Reasoning - More information: For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .