Private ruling: Residency
Date of advice: 5 March 2026
Published: 20 April 2026
Ruling period: Year ended 30 June 2025

Ruling: Q1: Did the Taxpayer cease to be a resident of Australia from DD MM 20YY for tax purposes under section 6(1)? | A1: Yes. | Q2: If the answer to Question 1 is no, on what date did the Taxpayer cease to be a resident of Australia for tax purposes under section 6(1) of the ITAA 1936? | A2: The answer to Question 1 is yes.

Relevant facts and circumstances: The Taxpayer was born in Country 1 in 19XX and is an Australian citizen. The Taxpayer's husband was born in Country 2, in 19XX and is a Country 3 citizen who has resided in Country 4 since MM 19XX. On DD MM 20XX, the Taxpayer relocated to Country 4 to live with their husband. The Taxpayer returned to Australia only twice, from DD MM to DD MM 20XX, and from DD to DD MM 20XX, to visit family and celebrate xx. The Taxpayer married their spouse in Country 4 on DD MM 20XX. The Taxpayer moved to Country 4 on an indefinite basis to live with their spouse. The Taxpayer currently has no intention of returning to Australia to live. The Taxpayer was issued a Country 4 xx on DD MM 20XX. The Taxpayer has established a domicile of choice in Country 4. The Taxpayer is lawfully present in Country 4 with the intention of remaining there indefinitely and has renewed their xx in Country 4 to 20XX. The Taxpayer, person A, and their children reside in an apartment in Country 4, leased for them by a company owned and controlled by person A in Country 4. The current lease expires in MM 20XX. The spouse's income is more than sufficient to support the family. The Taxpayer plans to have children in Country 4. The Taxpayer's family continue to live in Australia. The Taxpayer owns an apartment on the Gold Coast, which they have chosen to retain and have not yet rented out. There is no immediate plan to rent the apartment as the Taxpayer and spouse do not need the money and they are willing to currently bear the additional burden of maintaining the property as an investment. That may change if the costs of maintaining the property increase, including if a vacancy tax is imposed, or these is a material increase in land tax. The Taxpayer has retained their Australian bank accounts, along with small investments and an Australian credit card. The Taxpayer owns a car in Australia and has not yet updated their xx. The Taxpayer has continued their private health cover in Australia. The Taxpayer also holds health insurance in Country 4. The Taxpayer will continue to hold a Medicare card if the Commissioner determines that they remain a tax resident of Australia. The Taxpayer holds a superannuation account. The Taxpayer is a beneficiary of an Australian-resident trust established by parent. The Taxpayer intends to remove themself from the Australian electoral roll. The Taxpayer has Country 4 credit cards. The Taxpayer has established medical arrangements in Country 4, including a general practitioner and an acupuncturist. The Taxpayer maintains a local Country 4 mobile phone plan. The Taxpayer will periodically return to Australia to visit family and friends, typically 2 to 3 times a year for stays of up to 2 weeks each, including birthdays, celebrations and holidays, with total time in Australia not expected to exceed 44 days in any given year. Detailed reasoning Overview of the law 1. Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). 2. The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. 3. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: a. the resides test (also referred to as the ordinary concepts test) b. the domicile test c. the 183-day test, and d. the Commonwealth superannuation fund test. 4. The resides test is the primary test for deciding the residency status of an individual. This test considers whether an individual resides in Australia according to the ordinary meaning of the word 'resides'. 5. 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 (the domicile test, 183-day test and Commonwealth superannuation fund test). 6. Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . 7. We have considered the statutory tests listed above in relation to the Taxpayers situation as follows: The resides test 8. The ordinary meaning of the word 'reside' has been 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': See Commissioner of Taxation v Miller (1946) 73 CLR 93 at 99 per Latham CJ, citing Viscount Cave LC in Levene v Inland Revenue Commissioners [1928] AC 217 at 222, citing the Oxford English Dictionary. Likewise, the Macquarie Dictionary defines 'reside' as 'to dwell permanently or for a considerable time; have one's abode for a time'. 9. The observations contained in the case of Hafza v Director-General of Social Security (1985) 6 FCR 444 are also important: a. Physical presence and intention will coincide for most of the time. But few people are always at home. Once a person has established a home in a particular place - even involuntarily: see Commissioners of Inland Revenue v Lysaght [1928] AC 234 at 248; and Keil v Keil [1947] VLR 383 - a person does not necessarily cease to be resident there because he or she is physically absent. The test is whether the person has retained a continuity of association with the place - Levene v Inland Revenue Commissioners [1928] AC 217 at 225 and Judd v Judd (1957) 75 WN (NSW) 147 at 149 - together with an intention to return to that place and an attitude that that place remains "home": see Norman v Norman (No 3) (1969) 16 FLR 231 at 235... [W]here the general concept is applicable, it is obvious that, as residence of a place in which a person is not physically present depends upon an intention to return and to continue to treat that place as "home", a change of intention may be decisive of the question whether residence in a particular place has been maintained. 10. The Commissioner considers the following factors in relation to whether a taxpayer is a resident under the 'resides' test: a. period of physical presence in Australia b. intention or purpose of presence c. behaviour while in Australia d. family and business/employment ties e. maintenance and location of assets f. social and living arrangements. 11. It is important to note that no one single factor is decisive, and the weight given to each factor depends on each individual's circumstances. 12. Because the resides test is about whether an individual resides in Australia, the factors focus on the individual's connection to Australia. Having a connection with another country, or being a resident of another country, does not diminish any connection to Australia. The ordinary meaning of reside does not require an individual to have a principle or usual place of residence in Australia. Application to your circumstances 13. The Taxpayer is not a resident of Australia under the resides test for the year ended 30 June 2025 based on the following, noting that they remained a resident of Australia for tax purposes until their departure on DD MM 20XX: a. The Taxpayer departed Australia on DD MM 20XX to live in Country 4 on an indefinite basis, and from that date their physical presence in Australia has been limited to short occasional visits. Specifically, from DD MM to DD MM 20XX and from DD to DD MM 20XX, to see family and celebrate . b. The Taxpayer's stated intention is to live permanently with their husband in Country 4. This aligns with TR 2023/1, which emphasises that an individual's intention to treat a place as home is central to residency. c. spouse and their children permanently reside in Country 4, and they have established their married life and household there. The Taxpayer also would like to have children in Country 4. These factors strongly indicate that their residence is located overseas. d. After moving to Country 4, the Taxpayer obtained a Country 4 Identity Card on DD MM 20XX, renewed their residency visa in Country 4 to 20XX, reside in a family apartment under a lease to MM 20XX, has secured local healthcare, maintained a Country 4 mobile plan, and used Country 4 credit cards. These actions demonstrate that their daily living, routines and social integration now exist in Country 4, and are consistent with having ceased to reside in Australia. e. Although the Taxpayer retained an apartment on the as an investment property, Australian bank accounts, a credit card, a car, private health insurance, and their Medicare card, TR 2023/1 emphasises that these factors are not determinative and may persist even where an individual has otherwise ceased to reside in Australia. In this case, these connections are outweighed by the permanence and quality of their life in Country 4. f. From DD MM 20XX, the Taxpayer's living arrangements, intention, and conduct demonstrate a clear and permanent shift of their home to Country 4. The Taxpayer's connection to Australia after DD MM 20XX is limited, occasional, and not consistent with continuing to reside in Australia. 14. The Taxpayer may still be an Australian resident if they meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test). Domicile test 15. Under the domicile test, the Taxpayer is a resident of Australia if their domicile is in Australia unless the Commissioner is satisfied that the Taxpayer's permanent place of abode is outside Australia. Domicile 16. Whether the Taxpayer's domicile is in Australia is determined by the Domicile Act 1982 and the common law rules on domicile. 17. The Taxpayer's domicile is their domicile of origin (usually the domicile of their parent at the time of their birth) unless they have a domicile of dependence or have acquired a domicile of choice elsewhere. To acquire a domicile of choice of a particular country they must be lawfully present there and hold the positive intention to make that country their home indefinitely. Their domicile continues until they acquire a different domicile. Whether their domicile has changed depends on an objective consideration of all relevant facts. Application to your circumstances 18. In this case, the Taxpayer was born in Country 1 in 19XX, and their domicile of origin is Country 1. The Taxpayer later became an Australian citizen. 19. It is considered that the Taxpayer abandoned their domicile of origin in Country 1 and acquired a domicile of choice in Australia when they became an Australian citizen and established their life here. The Taxpayer has now formed the positive intention to make Country 4 their home indefinitely, having moved there to live with spouse. The Taxpayer is lawfully present in Country 4 with the intention of remaining there indefinitely and have renewed their residency visa in Country 4 to 20XX. 20. Therefore, the Taxpayer's domicile is in Country 4. Permanent place of abode 21. If the Taxpayer has an Australian domicile, they are an Australian resident unless the Commissioner is satisfied that their permanent place of abode is outside Australia. This is a question of fact to be determined in light of all the facts and circumstances of each case. 22. 'Permanent' does not mean everlasting or forever, but it is to be distinguished from temporary or transitory. 23. The phrase 'permanent place of abode' calls for a consideration of the physical surroundings in which they live, extending to a town or country. It does not extend to more than one country, or a region of the world. 24. The Full Federal Court in Harding v Commissioner of Taxation [2019] FCAFC 29 held at paragraphs 36 and 40 that key considerations in determining whether a taxpayer has their permanent place of abode outside Australia are: a. whether the taxpayer has definitely abandoned, in a permanent way, living in Australia b. whether the taxpayer is living in a town, city, region or country in a permanent way. 25. The Commissioner considers the following factors relevant to whether a taxpayer's permanent place of abode is outside Australia: a. the intended and actual length of the taxpayer's stay in the overseas country b. whether the taxpayer intended to stay in the overseas country only temporarily and then to move on to another country or to return to Australia at some definite point in time c. whether the taxpayer has established a home (in the sense of dwelling place; a house or other shelter that is the fixed residence of a person, a family, or a household), outside Australia d. whether any residence or place of abode exists in Australia or has been abandoned because of the overseas absence e. the duration and continuity of the taxpayer's presence in the overseas country f. the durability of association that the person has with a particular place in Australia, i.e. maintaining assets in Australia, informing government departments such as the Department of Social Security that he or she is leaving permanently and that family allowance payments should be stopped, place of education of the taxpayer's children, family ties and so on. 26. As with the factors under the resides test, no one single factor is decisive, and the weight given to each factor depends on the individual circumstances. Application to your circumstances 27. The Commissioner is satisfied that the Taxpayer's permanent place of abode is outside Australia because: a. The Taxpayer moved to Country 4 on DD MM 20XX on an indefinite basis, with no intention of returning to Australia to live. b. The Taxpayer moved to join spouse and to establish their long-term family life in Country 4. c. The Taxpayer resides with their spouse and their children in the Country 4 apartment, which is secured under a lease expiring in MM 20XX. The Taxpayer has integrated into daily life by obtaining local medical care, holding a Country 4 ID, renewing their Country 4 residency visa to 20XX, maintaining a local mobile plan and banking arrangements. d. Although the Taxpayer has retained the xx apartment, it is no longer their place of residence and is held as an investment property. The Taxpayer's practical home life is in Country 4, and they return to Australia only for short visits to spend time with family and friends for birthdays, celebrations and holidays. e. From DD MM 20XX onward, the Taxpayer has primarily lived in Country 4 and established stable living arrangements. f. The Taxpayer retains some Australian assets (xx apartment, bank accounts, car, private health cover, superannuation). However, their stronger and more permanent place of abode is in Country 4. 28. Therefore, the Taxpayer is not a resident of Australia under the domicile test. 183-day test 29. Where a person is present in Australia for 183 days or more during the year of income the person will be a resident, unless the Commissioner is satisfied that both: a. the person's usual place of abode is outside Australia, and b. the person does not intend to take up residence in Australia. Application to your circumstances 30. The Taxpayer returned to Australia only twice, from DD MM to DD MM 20XX and from DD to DD MM 20XX. The Taxpayer was not present in Australia for 183 days or more during the 2025 income year, and therefore they are not a resident under this test. Usual place of abode 31. In the context of the 183-day test, a person's usual place of abode is the place they usually live, and can include a dwelling or a country. A person can have only one usual place of abode under the 183-day test. However, it is also possible that a person does not have a usual place of abode. This is the case for a person who merely travels through various countries without developing any strong connections. 32. If a person has places of abode both inside and outside Australia, then a comparison may need to be made to determine which is their usual place of abode. When comparing two places of abode of a particular person, we will examine the nature and quality of the use which the person makes of each particular place of abode. It may then be possible to determine which is the usual one, as distinct from the other or others which, while they may be places of abode, are not properly characterised as the person's usual place of abode: Emmett J at [78] in Federal Commissioner of Taxation v Executors of the Estate of Subrahmanyam [2001] FCA 1836. Application to your circumstances 33. The Commissioner is satisfied that the Taxpayer's place of abode was outside Australia for the relevant income year based on the following: a. The Taxpayer's day-to-day life is in Country 4. Since departing Australia on DD MM 20XX, they have lived with their spouse and their children in the Country 4 apartment, indicating settled and stable living arrangements. b. The Taxpayer has established long-term personal, social and practical ties in Country 4, including obtaining a Country 4 Identity Card, arranging local medical care, holding Country 4 credit cards, and maintaining a Country 4 mobile phone plan, all of which demonstrate that Country 4 is their primary living environment. c. The Taxpayer's presence in Australia is limited to short visits for family or social reasons. Such intermittent and temporary visits do not reflect a continuing usual place of abode in Australia. d. The Taxpayer's intention is to continue living in Country 4 indefinitely, with no intention of returning to Australia to reside. 34. Although the Taxpayer retained some Australian assets (xx apartment, bank accounts, car, private health cover, superannuation), these connections are not determinative of a usual place of abode. Their actual lifestyle, living arrangements, and family unit exist in Country 4. Intention to take up residency 35. To determine whether the Taxpayer intend to take up residence in Australia, we look at evidence of relevant objective facts. 'Intend to take up residency' does not merely mean intend to stay for a long time. It means intending to live here in such a manner that the Taxpayer would reside here. Application to your circumstances 36. The Commissioner is satisfied that the Taxpayer did not intend to take up residence in Australia for the relevant period during the 2025 income year because: a. The Taxpayer relocated to Country 4 on DD MM 20XX on an indefinite basis, expressly stating that they have no intention of returning to Australia to live. The Taxpayer only returned to Australia twice, from DD MM to DD MM 20XX, and from DD to DD MM 20XX, to visit family and xx. b. spouse and family unit are permanently based in Country 4, and they intend to raise future children there, demonstrating their long-term intention to make Country 4 their home. c. The Taxpayer has taken real steps to embed their life in Country 4, including obtaining a Country 4 Identity Card, renewing their Country 4 residency visa, establishing Country 4 medical arrangements, maintaining a local mobile plan, and using Country 4 credit cards, all of which show that they intend to live there and not in Australia. d. The Taxpayer's anticipated visits to Australia are short and are for visiting family and friends, which is not consistent with someone intending to take up residence in Australia. e. The Taxpayer has expressed an intention to remove themself from the Australian electoral roll, reinforcing their intention not to resume residency in Australia. Superannuation test 37. 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. These schemes comprise the Public Sector Superannuation Scheme (PSS) and the Commonwealth Superannuation Scheme (CSS), respectively. Application to your circumstances 38. The Taxpayer is not a member on behalf of whom contributions are being made to the PSS or the CSS or a spouse of such a person, or a child under 16 of such a person. Therefore, the Taxpayer is not a resident under this test. Conclusion 39. As the Taxpayer does not satisfy any of the 4 tests of residency, the Taxpayer is not a resident of Australia for income tax purposes for the year ended 30 June 2025.