Private ruling: Residency
Date of advice: 19 September 2025
Published: 10 November 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for taxation purposes from the relevant date? | A1: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You are not a permanent resident of any other country. You and your child left Australia to go to Country Z. Your child is enrolled in a school in Country Z. You have taken a position with Employer Z in Country Z. This employment is indefinite. You will enter Country Z on a work visa which can be renewed. You do not intend on coming back to Australia for the foreseeable future. You have resigned from your position in Australia and have sold your family home in Australia. Your spouse and another child will join you and your child in Country Z. You rented accommodation in Australia after you sold your home. Your spouse and child are living with your in-laws until they leave for Country Z. Your second child is finishing their study in Australia. You will return to Australia for a couple of weeks to support your child with their study. You will stay with your in-laws for the duration of this trip. You will rent accommodation in Country Z for several months until your spouse joins you and you will then purchase a home in Country Z. You will make trips back to Australia for a few weeks each year to visit family and friends and you will stay with family or in hotels. You have sold most of your belongings in Australia prior to going to Country Z. You have sent a number of parcels to Country Z which contained personal in addition to the items you took with you on the flight in your luggage. You will maintain a bank account in Australia to facilitate your rental properties. You have advised your financial institution, Medicare, and the AEC that you are a foreign resident who has departed from Australia. You intend on applying for a Country Z driver's license. You have ceased all Australian ties such as memberships with organizations and affiliations in Australia except for your professional membership. The registration is a globally recognised accreditation and required as part of your profession. You are the sole shareholder in a company, of which your spouse is director. The company owns a business which is operated and managed by your spouse. Aside from owning the shares in the company, you are not involved in the company's business. Your spouse intends to sell the business prior to departing Australia. You will open a bank account in Country Z shortly after arriving. You and your spouse have a SMSF in Australia, you will shortly resign as a director of the trustee of the SMSF and your spouse is attending to the wind-up of the SMSF before they leave indefinitely for Country Z. Your spouse will not work in Country Z and will support the household in the transition to Country Z. You or your spouse are not eligible to contribute to the PSS or the CSS Commonwealth Government super 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, whether you are a resident of Australia is defined by subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The definition has four tests to determine your residency for income tax purposes. These tests are: • the resides test • the domicile tests • the 183-day test, and • the Commonwealth superannuation fund test. It is sufficient for you to be a resident under one of these tests to be a resident for tax purposes. Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . | Detailed Reasoning - The resides test: The resides test is the primary test of tax residency for an individual. If you reside in Australia according to the ordinary meaning of the word resides, you are considered an Australian resident for tax purposes. Some of the factors that can be used to determine whether you reside in Australia include: • 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. No single factor is decisive, and the weight given to each factor depends on your specific circumstances. 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. | Detailed Reasoning - The domicile tests: Under the domicile test, if your domicile is in Australia, you are a resident of Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. Whether your domicile is Australia is determined by the Domicile Act 1982 and the common law rules on domicile. For example, you may have a domicile by origin (where you were born) or by choice (where you have changed your home with the intent of making it permanent). Whether your permanent place of abode is outside Australia is a question of fact to be determined in light of all the facts and circumstances of each case. Key considerations in determining whether you have your permanent place of abode outside Australia are: • whether you have abandoned, in a permanent way, living in Australia • length of overseas stay • nature of accommodation, and • durability of association | Detailed Reasoning - The 183-day test: Under the 183-day test, if you are present in Australia for 183 days or more during the income year, you will be a resident, unless the Commissioner is satisfied that both: • Your usual place of abode is outside Australia, and • You do not intend to take up residence in Australia. The question of usual place of abode is a question of fact and generally means the abode customarily or commonly used by you when are physically in a country. | Detailed Reasoning - The Commonwealth 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 circumstances: We have considered each of the statutory tests listed above in relation to your particular facts and circumstances. We conclude that for the relevant period you are a resident of Australia as follows. Considering your individual circumstances, we have concluded that you are not a resident of Australia according to ordinary concepts. You have gone to Country Z to live and work. Your family will join you in Country Z. You have sold your family home in Australia. You will only return to Australia for short visits to see family and friends. You have left Australia indefinitely. We also consider that your domicile is in Australia as you are a citizen of Australia. The Commissioner is satisfied that you have a permanent place of abode outside Australia. We considered the following factors in forming our conclusion: • You have gone to Country Z indefinitely • You have gone to Country Z to live and work • Your spouse and children will join you in Country Z • You will rent accommodation initially in Country Z and then will purchase a home in Country Z You will not be in Australia for more than 183 days in the relevant income year and you do not intend on being in Australia for more than 183 days in any future income years. You do not fulfil the requirements of the Commonwealth Superannuation test and are therefore not a resident under this test. You are not a resident of Australia for taxation purposes for the relevant income year.