Private ruling: Residency of Australia
Date of advice: 7 November 2025
Published: 22 December 2025
Ruling period: Income year ended 30 June 20YY

Ruling: Q1: Is Person A a resident of Australia for tax purposes in respect of the year ended 30 June 20YY under subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes.

Relevant facts and circumstances: Person A was born in Australia and holds Australian citizenship. Person A departed Australia to reside in Country X on in MM YYYY to spend time with their spouse who has been working in Country X. Person A has no family in Country X other than their spouse. Person A holds a 3-year visa, which permits them to work full-time in Country X and expires in early 20YY. Whilst in Country X, Person A has been employed and has been living with their spouse in rental apartments. Since their departure from Australia to reside in Country X in MM YYYY, Person A has returned to Australia twice during the 20YY income year. The first time they departed Country X was a DD-day absence and the second time they departed Country X was a DD day absence. The purpose of each visit was to visit family and manage aspects of a house build (discussed further below). Person A will formally resign from their employment position on DD MM 20YY. A one-way flight to Australia on DD MM 20YY has been booked and Person A will be returning to reside permanently in Australia the following day. Their spouse intends to return to Australia in 20YY or 20YY. Person A has adult children, parents and a sibling, all of whom reside in Australia. Person A owns an Australian residential property. They lived at this property prior to moving to Country X and intends to reside there again upon returning to Australia. One of Person A's children has resided at the Australian residential property whilst Person A has been in Country X. She has continued to pay body corporate fees, utilities, council rates and insurance in respect of this property. Person A also owns another property in Australia. This property has been under development, with completion expected in approximately MM/MM 20YY. Other assets owned by Person A and located in Australia include a share portfolio, bank accounts, household goods and superannuation. Person A also has access to a joint global bank account, set up in both Australia and Country X. Person A has no property, share portfolios or household goods in Country X. Person A has maintained private health insurance in Australia and has remained registered under Medicare. Person A has remained enrolled on the Australian Electoral Commission. Person A did not at any time inform any Australian financial institution with whom they have investments that they are a foreign resident so that non-resident withholding tax could be deducted, nor did Person A at any time inform any Australian company with whom they have investments that they are a foreign resident. Person A has no sporting, social, or association memberships in either Country X or Australia. Person A has only ever lodged tax returns in Australia. Person A has not disposed of any CGT assets or otherwise had any CGT events while living in Country X. Person A and their spouse have never contributed, or had contributions made on their behalf, to either the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS). Person A advises that they do not intend to reside or work in Country X again and submits that they never intended to reside in Country X long-term and always intended to return to reside permanently in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1936 paragraph 6(1)(a) | Income Tax Assessment Act 1936 subparagraph 6(1)(a)(i) | Income Tax Assessment Act 1936 subparagraph 6(1)(a)(ii) | Income Tax Assessment Act 1936 subparagraph 6(1)(a)(iii)

Reasons for decision: Summary: Person A is a resident of Australia for tax purposes in respect of the year ended 30 June 20YY under subsection 6(1) of the ITAA 1936. | Detailed Reasoning - Detailed reasoning:: The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936 to mean: (a) a person, other than a company, who resides in Australia and includes a person: (i) whose domicile is in Australia, unless the Commissioner is satisfied that the person's permanent place of abode is outside Australia; (ii) who has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless the Commissioner is satisfied that the person's usual place of abode is outside Australia, and that the person does not intend to take up residency in Australia; or (iii) who is: (A) a member of the superannuation scheme established by deed under the Superannuation Act 1990 or (B) an eligible employee for the purposes of the Superannuation Act 1976 or (C) the spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B).... These definitions contain 4 alternative tests for residency of individuals. These tests are: • the resides test (also known as the ordinary concepts test); [1] • the domicile test; [2] • the 183-day test; [3] and • the Commonwealth superannuation fund test. [4] 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. It is sufficient for the individual to be a resident under one of the tests to be a resident for tax purposes. Guidance regarding the residency tests for individuals and when the Commissioner considers that a person will be a resident of Australia is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals (TR 2023/1) . To determine an individual's residency status, it is appropriate to look beyond the period they have spent in (or out of) Australia. Factors from the entire income year and surrounding income years provide more information to help determine whether they meet one of the residency tests (paragraph 16 of TR 2023/1). | Detailed Reasoning - The resides test: Under the resides test an individual is a resident if they reside in Australia. The term 'resides' is not defined in the Income Tax Assessment Act and has its ordinary meaning, expressed as 'to dwell permanently or for a considerable time, to have one's settled or usual abode, to live, in or at a particular place'. The resides test asks whether the individual's presence in Australia is usual and settled in contrast to temporary and casual, informed by both the nature, duration and quality of their physical presence and an intention to treat Australia as home. Factors that commonly inform the relevant association with Australia are: • period of physical presence in Australia; • intention or purpose of presence; • behaviour while in Australia; • family and business or employment ties; • maintenance and location of assets; and • social and living arrangements. No single factor is decisive, and the weight given to each factor depends on the individual's circumstances. Paragraph 24 of TR 2023/1 relevantly explains: Because the ordinary concepts test asks whether you reside in Australia , having a connection to, or being a resident of another country does not necessarily diminish any connection to Australia. For this reason, the ordinary concepts test is not about dominance or exclusivity of residence in one place versus another. Nonetheless, continued connections overseas will inform the nature of your connection to Australia. While physical presence is an important consideration, physical absence does not necessarily result in non-residence. The question is whether the person has maintained a 'continuity of association' with Australia. Therefore, where a person who has previously spent a long time in Australia only spends short periods in Australia in a relevant income year, the shorter period of physical presence in Australia assumes less relevance if the person has retained a continuity of association with Australia, together with an intention to return to Australia and an attitude that Australia remains their home (paragraphs 25 and 30 of TR 2023/1). Person A did not cease to be a resident of Australia for tax purposes as a result of their predominant absence from Australia since they first moved to Country X in MM YYYY. Broadly, this is because Person A maintained a 'continuity of association' with Australia, as evidenced by their many other connections to Australia, together with an intention to return to Australia and an attitude that Australia remains their home. Having an ongoing, deliberate connection to Australia even though Person A had a connection to Country X through their work did not make them a mere visitor to Australia when they returned for short stints during the 20YY income year. Some of the relevant factors which inform the connection and intention Person A has maintained to Australia that characterises their presence as 'residing' in it include the following: • the presence of Person A's family in Australia and the absence of any family overseas (except for their spouse who is also working overseas but due to return to Australia); • the presence of all of Person A's investment ties in Australia and the absence of any investment ties overseas; • the fact that Person A retained their family residence and will be moving back into it on their return, and the fact that they and their spouse never owned any property whilst working overseas; • the holding of assets such as shares, household goods, superannuation and bank accounts in Australia and the absence of any assets held overseas; and • the presence of other factors, including Person A's ongoing registration with the Australian Electoral Commission, ongoing registration with the Medicare system and the continued holding of private health insurance. Having resided in Australia for the year ended 30 June 20YY Person A is considered to have satisfied the resides test under paragraph 6(1)(a) and been an Australian resident for tax purposes in respect of that year. Person A's satisfaction of any of the other 3 residency tests is therefore of no relevance to their residency status for that year but is nevertheless briefly discussed below for completeness. | Detailed Reasoning - The domicile test: Under the domicile test, an individual is a resident of Australia when their domicile is in Australia, unless the Commissioner is satisfied that their permanent place of abode is outside Australia. Domicile considers whether there is a legal relationship between a person and Australia, and consists of 3 types: • a 'domicile of origin', which is attributed to each individual at birth and is generally the country of their father's permanent home; • a 'domicile of dependence', which is relevant where a person lacks capacity to acquire their own domicile, and their domicile is determined by reference to someone else's domicile; and • a 'domicile of choice', which is the domicile a person acquires voluntarily. A person always has a domicile and can only have one domicile at any point in time. A person's particular domicile continues until they acquire a different one, either by choice or operation of the law. A domicile of origin cannot be abandoned without replacement, and to acquire a domicile of choice a person must have both lawful physical presence in a foreign country and an intention to make their home indefinitely in that country (paragraphs 58 and 59 of TR 2023/1). Relevantly, paragraph 61 of TR 2023/1 provides that a working visa, even for a substantial period of time, would usually not be sufficient evidence of an intention to acquire a new domicile of choice. Paragraph 62 of TR 2023/1 adds: If you have an Australian domicile and you are living outside Australia, you will retain your Australian domicile if you intend to return to Australia on a clearly foreseen and reasonably anticipated contingency (for example, at the end of your employment contract), even if you stay overseas for a substantial period. This is because you lack the necessary intention to settle in that country indefinitely... An individual will have their permanent place of abode [5] overseas where they have retained their Australian identity (as reflected in their Australian domicile), but have definitely abandoned their residency in Australia, and commenced living permanently overseas (paragraph 63 of TR 2023/1). The word 'permanent' in this context does not mean everlasting or forever, but it is to be distinguished from temporary or transitory. Relevant factors as to whether an individual's permanent place of abode is overseas include: • length of overseas stay; • nature of accommodation; and • durability of association. Generally, a departure from Australia with an intention to return to Australia after a finite period would not result in you having your permanent place of abode overseas. On the other hand, if you depart for an unspecified or substantial period, pack up your home in Australia, set up a home in a foreign country and live there with your family returning only occasionally, you are likely to meet the description of someone who has abandoned Australia as a place of residency and commenced living permanently overseas. This is despite the fact that you may at some point intend to return to Australia (paragraphs 74 and 76 of TR 2023/1). Person A has an Australian domicile. They did not abandon it to acquire Country X as their domicile of choice; that is, while they had lawful physical presence in Country X throughout the 20YY income year, based on the facts set out in this ruling they intended to return to Australia no later than the end of their 3-year visa and therefore did not intend to make their home indefinitely in that country. As well as their domicile being in Australia, the Commissioner is satisfied that Person A's permanent place of abode at all times during the 20YY income year was not outside Australia. Whilst Person A's departure from Australia was not for an insubstantial period, there is no basis on which to conclude that they packed their home in Australia and set up a home in Country X, and therefore no basis on which to conclude that Person A had commenced living in Country X permanently. Since Person A's domicile is in Australia and their permanent place of abode is not outside Australia, Person A is also considered to have satisfied the domicile test under subparagraph 6(1)(a)(i) of the ITAA 1936 in respect of the year ended 30 June 20YY. | Detailed Reasoning - 183-day test: Under the 183-day test, an individual who is present in Australia for 183 days or more during the income year will be a resident, unless the Commissioner is satisfied that both their usual place of abode is overseas and they do not intend to take up residency in Australia (i.e. do not intend to make Australia their home). An individual's usual place of abode is the place they usually live or would live but for being absent from it due to temporary circumstances. The 183-day test under subparagraph 6(1)(a)(ii) of the ITAA 1936 is not satisfied by Person A in respect of the year ended 30 June 20YY on the basis that they were present in Australia for less than 183 days during that year (among other reasons) . | Detailed Reasoning - Superannuation test: The Commonwealth superannuation test only applies to make resident members who are contributing, or are having contributions made on their behalf, to the PSS or the CSS (as well as the spouse and children under 16 years old of such members). The Commonwealth superannuation test under subparagraph 6(1)(a)(iii) of the ITAA 1936 is not satisfied by Person A in respect of the year ended 30 June 20YY on the basis that neither they or their spouse are a member (active or otherwise) of the PSS or CSS. [1] Paragraph 6(1)(a) of the ITAA 1936. [2] Subparagraph 6(1)(a)(i) of the ITAA 1936. [3] Subparagraph 6(1)(a)(ii) of the ITAA 1936. [4] Subparagraph 6(1)(a)(iii) of the ITAA 1936. [5] In this context, place of abode refers to the physical surroundings in which the individual lives, extending to a town or country.