Residency

Will I be considered an Australian tax resident for the duration of a 12-month temporary stay in Country B?

Yes This ruling applies for the following periods : Year ending 30 June 20XX The scheme commences on: XX XX 20XX

You were born in Australia and have resided here on a permanent basis. You and your children, aged X and X, are dual citizens of Australia and Country B. Your spouse is an Australian citizen and is currently in the process of applying for a one-year partner visa in Country B. You and your sons are scheduled to depart Australia on XX XX, arriving in Country B on XX XX. Your spouse will follow shortly after, departing on XX XX and arriving in Country B on XX XX. You intend to temporarily relocate to Country B with your spouse and children from mid-XX XX to late XX XX, with the clear intention to return to Australia. The purpose is recreational-to enjoy an extended holiday and experience a different culture. Your extended family remains in Australia. You maintain close relationships with your family, with whom you share weekly family dinners. Your XX is actively involved in your children's care, looking after them regularly. You also maintain a cordial relationship with your XX and XX, whom you typically see on a regular basis.

You have some extended family residing in Country B. Your relatives lives approximately XX hours from your intended residence and you may visit briefly during your stay. Additionally, your other relative, who lives about XX hours away, has been assisting you with administrative matters. Given that their children are close in age to yours, you anticipate visiting him every XX to XX months. You have secured a 12-month rental apartment in Country B for the duration of your stay. The property was obtained through a publicly available rental market and is not associated with any family member or employer. You applied for the lease independently and were accepted as a tenant. You intend to enrol your children in a local school in Country B for the duration of your stay and your spouse will undertake XX classes. You intend to continue performing your duties remotely as a XX of your Australian proprietary limited company, which operates as a trustee for a X trust. All income earned during your time abroad will be actively generated through your work for this Australian-based business and will be derived solely from Australian.

You are currently employed part-time as a lecturer with XX. You are in discussions with your employer regarding the possibility of taking leave without pay during your time overseas. However, if this arrangement cannot be accommodated, you may be required to resign from the position in XX XX. Your spouse will be on long service leave for the first period of the family's stay in Country B, followed by leave without pay for the remaining months. She is required to return to work by XX XX. Your wife holds shares in companies listed on the Australian Securities Exchange (ASX) and receives dividend income from these investments. You own a home in Australia, which will be rented out during your 12-month stay in Country B. You will retain ownership of the property. You own vehicles in Australia, which you will retain during your time overseas for use upon your return. You have multiple Australian bank accounts and credit cards. You lease commercial office in Australia, with rent and utilities in your or your company's name. The office will remain set up and in use by a co-occupant during your absence, and you intend to resume using it upon your return.

You do not currently hold any assets in Country B, apart from a single bank account which you opened online. You may obtain a local phone and SIM cards during your stay in Country B. You have arranged a rental car for the first month and may consider purchasing a vehicle for the remainder of the stay. You have booked one-way tickets to Country B for your family's departure. Return flights have not yet been booked, as airlines typically release fares approximately 12 months in advance of the travel date. You do not have any employment arranged in France and do not intend to undertake any paid work during your stay. You have rented a storage unit in Australia, where you will place personal and household belongings for the duration of your stay in Country B. You plan to pause your Australian private health insurance during your time in Country B, as permitted by your insurer. You will be covered by travel insurance, and your private cover can be reactivated immediately if you return to Australia for medical care.

You are an active member of a local XX club in Australia and have previously served on its committee. You currently represent XX on a national professional advisory panel. You have no social, sporting, or cultural ties in Country B, though you intend to join a gym for personal fitness during your stay. You have not notified any financial institutions, Medicare, the Australian Electoral Commission, or any investment bodies of a change in your residency status

Income Tax Assessment Act 1936 subsection 6(1) Income Tax Assessment Act 1997 section 995-1 Issue Residency Question Will I be considered an Australian tax resident for the duration of a 12-month temporary stay in Country B? Answer Yes Detailed reasoning Overview of the law 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 (also r