Private ruling: Residency of Australia for taxation purposes
Date of advice: 2 December 2025
Published: 27 January 2026
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. | Q2: Are you able to claim the main residence exemption on the sale of your family home in Australia? | A2: Yes.

Relevant facts and circumstances: You were born in Country Z. You are a citizen of Country Z. You are a permanent resident of Australia. You and your spouse have been permanent residents of Australia for a number of years. You and your spouse purchased a home in Australia several years after becoming a resident. The home has always been your and your family's home and has never been used to produce assessable income. You are not claiming a Capital gains tax main residence exemption for any other properties during the ruling period. Prior to going back to Country Z, you worked for Employer Z. A few years ago, you returned to Country Z to care for your parent. Upon arrival in Country Z, you lived in your parent's home, rather than establishing an independent residence. Your stay in Country Z was intended to be temporary, solely for caregiving purposes, and there was no intention to permanently relocate. You commenced full-time employment in Country Z with Employer Y working remotely from your parent's home. This employment was undertaken due to economic necessity, as caregiving responsibilities limited your ability to return immediately to Australia. Your parent passed away a few years ago. You lived in your parent's house in Country Z a a number of years. You moved out of your parent's home, and you moved into rental accommodation in Country Z. Due to your age and concerns about finding re-employment in Australia, you chose to remain in Country Z and continue working. You are a couple of years away from retirement and plan to return permanently to Australia upon retirement. Throughout your time in Country Z, you have maintained strong and continuing ties with Australia: • The family home was retained as your primary residence until its sale. • Your spouse and children continue to live in Australia, with the family's social and economic life centred there. • You continue to hold a Superannuation account in Australia. • You and your spouse have continuously maintained Australian Medicare coverage and private health insurance. • Your Australian bank accounts remain active. You have bank accounts in Country Z. You have returned to Australia a couple of times. You were not able to return to Australia while your parent was alive due to them requiring care. You were not able to return to Australia due to covid. Your spouse visits you in Country Z for a couple of months at a time multiple times a year. Your children visit you in Country Z a couple of times a year for a couple of weeks at a time. You maintain your friendship groups in Australia and Country Z. Neither you nor your spouse are 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 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 995-1

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 not a resident of Australia for taxation purposes as follows: • You are a resident of Australia according to the resides test. • You meet the domicile test. Your domicile is in Australia, and the Commissioner is satisfied that you do not have a permanent place of abode outside Australia. • You do not meet the 183 day test. • You do not meet the requirements of the Commonwealth Superannuation test. You are a resident of Australia for taxation purposes for the relevant income year. As a resident of Australia for taxation purposes you are able to claim the main residence exemption on the sale of your family home. For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .