Private ruling: Residency
Date of advice: 12 May 2026
Published: 20 July 2026
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you a resident of Australia for tax purposes as defined by subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. | Q2: Are you a temporary resident of Australia for income taxation purposes? | A2: Yes.

Relevant facts and circumstances: This ruling applies to Person A and Person B (jointly referred to as you). Background and residency On DD MM YYYY, Person A was born in Country A. On DD MM YYYY, Person B was born in Country B. On DD MM YYYY, you obtained Country C citizenship. You are citizens of Country B and Country C. On DD MM YYYY, you moved to Australia with the intention of living in Australia for a substantial and extended period. You entered Australia on a special visa and have continuously held that special visa from DD MM YYYY to the present. The special visa is a temporary visa that permits the holder to live and work in Australia while the holder continues to satisfy its conditions. You are not Australian citizens. You are not permanent residents. Australian assets and connections From DD MM YYYY to DD MM YYYY, you lived at Property 1, State A, Australia, which you jointly owned. On DD MM YYYY, you moved to Property 2, State A, Australia, which you jointly own. During the YYYY-YY to YYYY-YY income years, you held: • Australian bank accounts • Australian listed shares • interests in Australian resident managed investment trusts You managed your finances through Australian institutions during the relevant income years. Foreign assets Before relocating to Australia, you lived in Country C on a permanent basis and owned a family home there. Shortly after relocating to Australia, you sold that family home. You held foreign shares and managed investments located in Country C that you acquired while living in Australia, and you disposed of them in MM YYYY. Between YYYY and YYYY, you acquired foreign employer-sponsored shares in a Country D listed company under an employee share plan. On DD MM YYYY, you disposed of a substantial portion of those employer-sponsored shares. Association with Australia From DD MM YYYY onwards, you established and maintained your personal, family, social, and economic ties in Australia. You purchased and occupied residential property in Australia as your family home and conducted your day-to-day living there. You enrolled and raised your children in Australia, and they lived with you subject to ordinary life changes over time. You integrated into the Australian community through ordinary social and recreational activities. Throughout the relevant income years, Australia functioned as the centre of your personal, domestic, and economic life. Association with Country C Before relocating to Australia, you lived in Country C on a permanent basis and owned a family home there. After moving to Australia, you sold that family home and did not maintain any place of abode in Country C. Apart from limited financial investments (disposed of in MM YYYY), you did not maintain domestic or economic ties consistent with residence in Country C during the relevant income years. You maintained relationships with friends in Country C, managed primarily through electronic communication and infrequent short visits. You did not maintain ongoing domestic, employment, or social arrangements consistent with residence in Country C. You were not treated as a tax resident of Country C during the relevant income years. Association with Country B You hold citizenship of Country B. You did not live in Country B during the relevant income years. You did not own or lease property in Country B. You did not perform employment duties in Country B. You did not maintain domestic or economic ties indicative of residence in Country B during the relevant income years. Income During the YYYY-YY to YYYY-YY income years, you derived: • interest from Australian bank accounts • dividends from Australian listed shares (including franked and unfranked dividends) • capital gains and capital losses from the disposal of Australian listed shares • distributions from Australian resident managed investment trusts Some Australian managed funds in which you invested held assets located overseas, but each fund was an Australian resident trust. You did not derive employment income from work performed overseas during the relevant income years Superannuation You have not been contributing members of a superannuation scheme established for Australian Government employees. You have not been eligible for the Commonwealth superannuation test. Dependents You relocated to Australia with your children. Travel outside Australia Person A spent the following days outside Australia during the years under review: • Year ended 30 June YYYY: XX days - Country D, work: DD MM YYYY - DD MM YYYY (XX days) - Country E, work: DD MM YYYY - DD MM YYYY (XX days) • Year ended 30 June YYYY: XX days - Country E, holiday: DD MM YYYY - DD MM YYYY (XX days) • Year ended 30 June YYYY: XX days - Country C, work: DD MM YYYY - DD MM YYYY (XX days) - Country D, work: DD MM YYYY - DD MM YYYY (XX days) • Year ending 30 June YYYY: 18 days - Country F, holiday: DD MM YYYY - DD MM YYYY (XX days) Person B spent the following days outside Australia during the years under review: • Year ended 30 June YYYY: XX days • Year ended 30 June YYYY: XX days • Year ended 30 June YYYY: XX days • Year ending 30 June YYYY: XX days - Country F, holiday: DD MM YYYY - DD MM YYYY (XX days)

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 section 995-1 | Income Tax Assessment Act 1997 section 768-R | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 section 768-15 | Income Tax Assessment Act 1997 section 855-15 | Income Tax Assessment Act 1997 division 83A

Reasons for decision: Summary: You are a resident of Australia for tax purposes for income years 20YY, 20YY and 20YY. | Detailed Reasoning - Detailed reasoning: 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 income years 20YY, 20YY and 20YY, 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 do meet the 183 day test because you were in Australia for 183 days or more during the 20YY, 20YY and 20YY income year/s, and the Commissioner is not satisfied that both: - your usual place of abode is outside Australia, and - you do not intend to take up residence in Australia. • You do not fulfil the requirements of the Commonwealth Superannuation test. The Commissioner is satisfied you are a resident of Australia under the resides, domicile and 183 days test for 20YY, 20YY and 20YY years. | Detailed Reasoning - More information: For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . | Summary: You satisfy all requirements of the definition of a temporary resident in subsection 995-1(1) of the ITAA 1997. | Detailed Reasoning - Detailed reasoning: A temporary resident is defined in subsection 995-1(1) of the ITAA 1997. You are a temporary resident if: (a) you hold a temporary visa granted under the Migration Act 1958 (b) you are not an Australian resident within the meaning of the Social Security Act 1991 (c) 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, the holder of a permanent visa, or a protected Special Category Visa holder. | Detailed Reasoning - Temporary resident rules - overview: Subdivision 768-R of the ITAA 1997 modifies the ordinary rules that would otherwise apply to an Australian tax resident where the individual also meets the definition of a temporary resident. Broadly, while an individual is a temporary resident: • most foreign-sourced income is not taxed in Australia, except income earned from employment or services performed overseas • capital gains and losses from CGT events relating to assets that are not taxable Australian property are disregarded special rules apply to shares and rights acquired under employee share schemes. | Detailed Reasoning - Foreign-sourced income: Section 768-910 of the ITAA 1997 provides that ordinary income and statutory income derived from foreign sources is generally not included in assessable income while an individual is a temporary resident. This represents an exception to the general rule that Australian tax residents are taxed on their worldwide ordinary and statutory income. However, this concession does not extend to income from employment or personal services performed overseas, which remains assessable. | Detailed Reasoning - Capital gains tax (CGT): Section 768-915 of the ITAA 1997 provides that a temporary resident disregards capital gains and capital losses from CGT events that happen to assets that are not taxable Australian property. Taxable Australian property is defined in section 855-15 of the ITAA 1997 and includes assets with a sufficient connection to Australia (for example, Australian real property and certain business assets). Accordingly, CGT on foreign assets is generally excluded while temporary resident status applies. | Detailed Reasoning - Employee share schemes (ESS): Division 83A of the ITAA 1997 operates alongside Subdivision 768-R to ensure that employee share scheme shares and rights are dealt with under the specific ESS rules, particularly where benefits are connected with employment services. Where relevant, the taxable amount may need to be allocated (apportioned) by reference to Australian service, rather than being determined solely by the general CGT concession. | Detailed Reasoning - Conclusion on operation of the rules: Accordingly, where an individual satisfies the definition of a temporary resident in subsection 995-1(1) of the ITAA 1997, Subdivision 768-R modifies the ordinary residence-based rules so that most foreign-sourced income and gains are excluded from Australian tax, except to the extent the legislation specifically provides otherwise. | Detailed Reasoning - Application to your circumstances: In your circumstances, you entered Australia on DD MM YYYY on a special visa, granted under the Migration Act 1958 . You have continuously held that special visa from DD MM YYYY to the present. Accordingly, you satisfy paragraph (a) of the definition of "temporary resident" in subsection 995-1(1) of the ITAA 1997. You are residents of Australia for income tax purposes. However, you are not Australian citizens and do not hold permanent visas. For the purposes of paragraph (b) of subsection 995-1(1), you must not be Australian residents within the meaning of the Social Security Act 1991 . While you reside in Australia, you are not protected special visa holders within the meaning of that Act. As you arrived in Australia on DD MM YYYY, you do not meet the requirements to be treated as protected special visa holders. Accordingly, paragraph (b) of subsection 995-1(1) is satisfied. Each of you is the spouse of the other. As neither of you is an Australian citizen, permanent visa holder, or protected special visa holder, neither spouse is an Australian resident within the meaning of the Social Security Act 1991 . Accordingly, paragraph (c) of subsection 995-1(1) is satisfied. Accordingly, as all three requirements in subsection 995-1(1) of the ITAA 1997 are satisfied, you are temporary residents of Australia for income taxation purposes from DD MM YYYY and throughout the relevant income years. As you are temporary residents for the relevant income years, most foreign sourced income is not taxed in Australia. The main exception is income from employment or services performed overseas, which would still be taxable if you derived it. Capital gains and losses on assets that are not taxable Australian property are also disregarded while you are temporary residents. If you receive shares or rights from your employer under an employee share scheme, those benefits are generally dealt with under the employee share scheme rules (Division 83A of the ITAA 1997). This means an amount may be taxable in Australia because it is employment-related, even if the underlying shares are foreign and even if capital gains on foreign assets are otherwise disregarded for temporary residents.