Private ruling: Residency
Date of advice: 5 December 2025
Published: 27 January 2026
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX XX 20XX

Ruling: Q1: Am I a resident of Australia for tax purposes for the ruling period? | A1: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. Your 2 dependent children aged 13 and 15 years of age, are Australian citizens. You are a permanent Australian public servant and received income until you moved to country A. You are on approved leave without pay from your employment and returning to a position upon returning to Australia. You departed Australia to move to country A. You and your children accompanied your partner who works for the Australian Government. You and your dependent children entered country A on a long stay Visa (Type D) which enables you to remain in country A for the period of your partners posting. While in the country A there may be brief trips for recreational purposes, but these are not anticipated to exceed 4 weeks in total. You commenced part-time employment in country A with an Australian employer. You do not intend to apply for citizenship or permanent residency in country A. You and your family intend to return to Australia at the end of your partner's posting to country A. You are a member of the Public Sector Superannuation (PSS) Scheme. You established a new superannuation account while employed in country A. You and your family were members of several sporting clubs in Australia. You hold an Australian drivers' licence. You remain on the Australian Electoral roll. You have lodged Australian Tax Returns. Your private health insurance has been temporarily suspended while you're in country A. You have several bank accounts in Australia, including home loans, savings and credit accounts. You jointly own two properties in Australia. You and your family are members of social and sporting clubs in country A. You are applying for a drivers' licence in country A. You and your family are currently renting a house in country A on a 12-month lease. Aside from a small compulsory contribution, the rent is fully reimbursed by the Australian Government and all furniture within this property is privately rented and fully reimbursed by the Australian Government. You have a personal bank account and a joint bank account with your partner, used to pay for goods, services and bills while living in in country A.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 subsection 995-1(1) Reason for decision | Detailed reasoning | 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). | The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. | The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: | 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'. | 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). | Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . | We have considered the statutory tests listed above in relation to your situation as follows: | The resides test | 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'. | The observations contained in the case of Hafza v Director-General of Social Security (1985) 6 FCR 444 are also important: | 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... 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. | The Commissioner considers the following factors in relation to whether a taxpayer is a resident under the 'resides' test: | 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. | 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 situation | You are not a resident of Australia under the resides test for the period XXXX to XXXX based on the following: | You may still be an Australian resident if you meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test). | Domicile test | Under the domicile test, you are a resident of Australia if your domicile is in Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. | Domicile | Whether your domicile is in Australia is determined by the Domicile Act 1982 and the common law rules on domicile. Your domicile is your domicile of origin (usually the domicile of your father at the time of your birth) unless you have a domicile of dependence or have acquired a domicile of choice elsewhere. To acquire a domicile of choice of a particular country you must be lawfully present there and hold the positive intention to make that country your home indefinitely. Your domicile continues until you acquire a different domicile. Whether your domicile has changed depends on an objective consideration of all relevant facts. | Application to your situation | In your case, you were born in Australia, and your domicile of origin is Australia. | It is considered that you abandoned your domicile of origin in Australia and acquired a domicile of choice in country A. | Therefore, your domicile is country A, and you are not a resident of Australia under the domicile test. | Permanent place of abode | If you have an Australian domicile, you are an Australian resident unless the Commissioner is satisfied that your 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. | 'Permanent' does not mean everlasting or forever, but it is to be distinguished from temporary or transitory. | The phrase 'permanent place of abode' calls for a consideration of the physical surroundings in which you live, extending to a town or country. It does not extend to more than one country, or a region of the world. | 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: | The Commissioner considers the following factors relevant to whether a taxpayer's permanent place of abode is outside Australia: | 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 situation | The Commissioner is satisfied that your permanent place of abode is outside Australia because: | Therefore, you are not a resident of Australia under the domicile test. | 183-day test | 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: | Application to your situation | You have not been present in Australia for 183 days or more during the 20XX income year and are not expected to be present for 183 days in the 20XX and 20XX income years. Therefore, you are not a resident under this test. | Usual place of abode | 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. | 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 situation | The Commissioner is satisfied that your usual place of abode is outside Australia for the relevant income years based in the following: | Intention to take up residency | To determine whether you 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 you would reside here. | Application to your situation | The Commissioner is satisfied that you did intend to take up residence in country A for the relevant income years because: | 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. Application to your situation | You are not currently a member on behalf of whom contributions are being made to the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) or a spouse of such a person, or a child under 16 of such a person. Therefore, you are not a resident under this test. | Conclusion | As you do not satisfy any of the four tests of residency, you are not a resident of Australia for income tax purposes for the ruling period.

Reasons for decision: Detailed Reasoning - Detailed reasoning: 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). The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: 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'. 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). Our interpretation of the law in respect of residency is set out in Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . We have considered the statutory tests listed above in relation to your situation as follows: | Detailed Reasoning - The resides test: 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'. The observations contained in the case of Hafza v Director-General of Social Security (1985) 6 FCR 444 are also important: 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... 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. The Commissioner considers the following factors in relation to whether a taxpayer is a resident under the 'resides' test: 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. 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. | Detailed Reasoning - Application to your situation: You are not a resident of Australia under the resides test for the period XXXX to XXXX based on the following: You may still be an Australian resident if you meet the conditions of one of the other tests (the domicile test, 183-day test and Commonwealth superannuation fund test). | Detailed Reasoning - Domicile test: Under the domicile test, you are a resident of Australia if your domicile is in Australia unless the Commissioner is satisfied that your permanent place of abode is outside Australia. | Detailed Reasoning - Domicile: Whether your domicile is in Australia is determined by the Domicile Act 1982 and the common law rules on domicile. Your domicile is your domicile of origin (usually the domicile of your father at the time of your birth) unless you have a domicile of dependence or have acquired a domicile of choice elsewhere. To acquire a domicile of choice of a particular country you must be lawfully present there and hold the positive intention to make that country your home indefinitely. Your domicile continues until you acquire a different domicile. Whether your domicile has changed depends on an objective consideration of all relevant facts. | Detailed Reasoning - Application to your situation: In your case, you were born in Australia, and your domicile of origin is Australia. It is considered that you abandoned your domicile of origin in Australia and acquired a domicile of choice in country A. Therefore, your domicile is country A, and you are not a resident of Australia under the domicile test. | Detailed Reasoning - Permanent place of abode: If you have an Australian domicile, you are an Australian resident unless the Commissioner is satisfied that your 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. 'Permanent' does not mean everlasting or forever, but it is to be distinguished from temporary or transitory. The phrase 'permanent place of abode' calls for a consideration of the physical surroundings in which you live, extending to a town or country. It does not extend to more than one country, or a region of the world. 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: The Commissioner considers the following factors relevant to whether a taxpayer's permanent place of abode is outside Australia: 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. | Detailed Reasoning - Application to your situation: The Commissioner is satisfied that your permanent place of abode is outside Australia because: Therefore, you are not a resident of Australia under the domicile test. | Detailed Reasoning - 183-day test: 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: | Detailed Reasoning - Application to your situation: You have not been present in Australia for 183 days or more during the 20XX income year and are not expected to be present for 183 days in the 20XX and 20XX income years. Therefore, you are not a resident under this test. | Detailed Reasoning - Usual place of abode: 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. 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. | Detailed Reasoning - Application to your situation: The Commissioner is satisfied that your usual place of abode is outside Australia for the relevant income years based in the following: | Detailed Reasoning - Intention to take up residency: To determine whether you 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 you would reside here. | Detailed Reasoning - Application to your situation: The Commissioner is satisfied that you did intend to take up residence in country A for the relevant income years because: | Detailed Reasoning - 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 situation: You are not currently a member on behalf of whom contributions are being made to the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS) or a spouse of such a person, or a child under 16 of such a person. Therefore, you are not a resident under this test. | Detailed Reasoning - Conclusion: As you do not satisfy any of the four tests of residency, you are not a resident of Australia for income tax purposes for the ruling period.

the resides test (also referred to as the ordinary concepts test) | the Commonwealth superannuation fund test. | 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. | You will be physically present in country A from XXXX to XXXX. | Your stated purpose to live in country A is evidenced by you and your children accompanying your partner there on a 2-year posting. | Your have long-term rental accommodation in country A on a 12-monthly lease agreement. | Your 2-year employment contract in country A is for approximately two years. | Your main residence in Australia is rented out while you're in country A. | whether the taxpayer has definitely abandoned, in a permanent way, living in Australia | whether the taxpayer is living in a town, city, region or country in a permanent way. | the intended and actual length of the taxpayer's stay in the overseas country | 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 | 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 | whether any residence or place of abode exists in Australia or has been abandoned because of the overseas absence | the duration and continuity of the taxpayer's presence in the overseas country | 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. | your home in Australia has been abandoned because of the overseas absence. | You have long-term rental accommodation in country A. | the person's usual place of abode is outside Australia, and | the person does not intend to take up residence in Australia. | Although you have retained your Australian home, it is leased out to an arm's length party and is therefore unavailable to you. | You have long-term rental accommodation in country A, on a 12-monthly lease agreement. | You are physically present in country A from XXXX to XXXX. | Your Australian home has been abandoned during the overseas absence. | You have a long-term rental accommodation lease agreement in country A.