Private ruling: Residency of Australia for taxation purposes
Date of advice: 28 October 2025
Published: 15 December 2025
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes.

Relevant facts and circumstances: You were born in Country Z. You are a citizen of Country Z. You are not a permanent resident of any other country. You were living in a rental property in Country Z prior to moving to Australia. It is your intention to obtain permanent residency in Australia. You came to Australia in a prior year. You are on a visa. Your visa expires in a future year, and you intend on renewing it. You were traveling and setting up your life in Australia from when you arrived until you obtained employment in the middle of the following year. You signed a contract of employment. You hope that your employer will sponsor you for a visa. You registered as a sole trader in Australia, with an active ABN, and have declared as a resident for tax purposes for this business. You maintain Australian bank accounts with regular local transactions. You have a car in Australia. You have lived at your current address for a number of months. Utility accounts and mobile phone plans are in your name. You brought clothing and personal items to Australia with you. You have stored the remainder of your belongings with your parents in Country Z. You have joined local gym and sports groups. You have established a social and professional network in Australia. Your parents and siblings remain in Country Z. You do not have a spouse. You do not have any dependants. You have returned to Country Z for several weeks since arriving in Australia. You are not eligible to contribute to the PSS or the CSS Commonwealth Superannuation funds.

Relevant legislative provisions: Income tax Assessment Act 1936 section 995-1 | Income Tax Assessment Act 1997 subsection 6(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 considering 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 income year you are a resident of Australia. Considering your individual circumstances, we have concluded that you are a resident of Australia according to ordinary concepts. You have come to Australia on a visa to travel and work. You have obtained employment in Australia. Your long-term goal is to obtain permanent residency in Australia. You have established professional and social connections in Australia. You have been living in the same rental property for number of months. Your domicile is not in Australia as you are a citizen of Country Z and although your long-term goal is to obtain permanent residency in Australia this has not yet happened. You are a resident under the 183-day test as you have been in Australia for more than 183 days in the relevant income year. It is your intention to remain in Australia until the expiration of your visa and to renew the visa. You do not fulfil the requirements of the Commonwealth Superannuation test and are therefore not a resident under this test. You are a resident of Australia for taxation purposes for the 2025 income year under the resides and the 183-day tests.