Edited version of private advice

Authorisation Number: 1052252573649

Date of advice: 6 June 2024

Ruling

Subject: Residency

Question

Are you a resident of Australia for tax purposes as defined in subsection 6(1) of the Income Tax Assessment Act 1936 from the date of your arrival on DD/MM/20YY?

Answer

Yes.

This ruling applies for the following periods:

Year ending DD/MM/20YY

Year ending DD/MM/20YY

Year ending DD/MM/20YY

Year ending DD/MM/20YY

The scheme commenced on:

DD/MM/20YY

Relevant facts and circumstances

You were born in Country A.

You are a citizen of Country A.

You arrived in Australia on DD/MM/20YY on a Working Holiday visa.

Your initial intention was to stay for a year, working freelance and determining whether you would like to pursue staying in Australia after this time.

Shortly before arriving, you signed a 12-month lease on a property with your spouse who is an Australian citizen.

You own an apartment in Country A which is rented out whilst you are residing in Australia.

You left no motor vehicles or household effects of material value in Country A.

You do not have any current employment held for you in Country A.

On DD/MM/20YY, you commenced employment with an employer in a full-time contractor role, in Management Consulting.

At the end of 20YY, you received an offer for a visa sponsorship and you decided to accept the offer with the intention of staying in Australia for the foreseeable future.

On DD/MM/20YY, you started a full-time permanent role, as a manager with a national company.

On DD/MM/20YY, you were granted a Temporary Skill Shortage visa which enables you to stay in Australia for a further 4 years.

You have a savings account and funds account.in Country A, and also have two bank accounts in Australia.

You play sport socially on an ad hoc basis but have no strong sport connections either in Australia or in Country A.

You are not eligible to contribute to the PSS or the CSS Commonwealth super funds.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(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 you are a resident of Australia for tax purposes for the 20YY income year as follows:

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

•         You meet the 183-day test for the relevant income year.

In summary, you are a resident of Australia for tax purposes for the relevant income years.

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