If you're in Australia for more than half the income year, continuously or intermittently, you will be a resident of Australia unless both:
- your usual place of abode is outside Australia
- you have no intention to take up residence here.
In this test, we must be satisfied that your usual place of abode is outside Australia. This is different to the first test (domicile) that requires us to be satisfied that your permanent place of abode is outside Australia.
The phrase 'usual place of abode' should not be given the same or similar meaning as the phrase 'permanent place of abode'. The terms 'usual' and 'abode' should be given their ordinary and natural meanings.
The Macquarie Dictionary gives the following definitions:
- usual means habitual, customary
- abode means a dwelling, habitation.
The shorter Oxford Dictionary gives the following definitions:
- usual means current, ordinary, customary
- abode means habitual residence, place of habitation, house or home.
Determining your usual place of abode
Whilst the question of a usual place of abode is a question of fact, generally the phrase is interpreted as the abode customarily or commonly used by you when are physically in a country.
Your place of abode does not have to be fixed but must have the attributes of a place of residence or a place to live. It can’t have the attributes of an overnight, weekly or monthly accommodation of a traveller.
Your presence in Australia doesn't need to be continuous for the purposes of the 183-day test. All the days you're physically present in Australia during the income year will be counted. This includes the day of your arrival and departure. It's important to note that the 183-day test applies in relation to the year of income, not the calendar year.
Example: foreign resident
Lars lives in Munich and is granted a 12 month working holiday maker visa. He plans to return to Munich, and resume his career as a carpenter, after his 12 month working holiday in Australia. He takes 12 months leave from his work. He owns a home in Munich which he doesn't rent out.
Lars arrives in August 2021 and has 5 different jobs while he travels around Australia, visiting every capital city during his 12 month stay. He stays in no place for longer than 2 months. Lars only works for seven of the 12 months he's in Australia as he is primarily here to see as much as he can, picking up carpentry work to supplement his funds as he travels. Lars isn't an Australian resident under ordinary concepts and although he's in Australia for more than 6 months in the year ended 30 June 2022, Lars will not satisfy the 183-day test, as his usual place of abode is outside Australia.End of example
For more general information about residency, see Your tax residency.
For information on the other 3 residency tests, see:
- Residency – the resides test
- Residency – the domicile test
- Residency – the superannuation test
- Australian and foreign residents examples.
For more about residency and income, see TR 2023/1: Income tax: residency tests for individuals.
If you need help applying this information to your own situation, you can contact us.The 183-day test is one of the tests used to determine if you are a resident of Australia for tax purposes.