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Edited version of private advice

Authorisation Number: 1052226863672

Date of advice: 1 March 2024

Ruling

Subject: Residency

Question

Were you a resident of Australia for tax purposes for the 2023 financial year, as defined by subsection 6(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

On XX XX 19XX, you were born in Country A. You continue to be a citizen of Country A.

On XX XX 20XX, you arrived in Australia.

Your entry into Australia was granted with the issue of a subclass 482 visa (the Visa), which is a temporary skill shortage visa.

The conditions of the visa require that:

•         You maintain your health insurance

•         You undertake approved work only

You were accompanied to Australia with your spouse and child.

On XX XX 20XX, you commenced your employment with an Australian company.

You are employed on a full-time basis.

Your travel plans whilst living in Australia, will most likely be within Australia.

You have not travelled outside of Australia since your arrival.

When you do travel overseas, you stay in hotels and Airbnbs.

You do not own a home outside of Australia.

You do not hold any assets outside of Australia.

You have a driver's licence in another country.

You have active bank accounts and a car in Australia.

You have engaged with social groups in Australia and are a registered member/player for a Football Club.

On XX XX 20XX, you entered into a rental lease agreement.

On XX XX 20XX, the rental lease agreement expires.

On XX XX 20XX, the Visa expires.

Your intention is to seek permanent residency in Australia when you are eligible to apply.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 6(1)

Income Tax Assessment Act 1997 section 995-1

Reasons for decision

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 are a resident of Australia for the 20XX income year, as follows:

•         You are a resident of Australia according to the resides test.

•         You do not meet the domicile test because your domicile is not Australia.

•         You do not meet the 183 day test because you were not in Australia for 183 days or more during the 20XX income year.

•         You do not fulfill the requirements of the Commonwealth Superannuation test.

More information

For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals.

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