Are you an Australian tax resident?

Australian tax residents are generally subject to tax on their worldwide income. Therefore it is important for individuals to understand precisely when they become or cease to be an Australian tax resident.

Whether a person is an Australian resident is not always easy to determine and people can be surprised when a full residency analysis is performed.

We have sought to outline some of the basic issues to be considered in determining residency below.

If any of these tests are satisfied an individual will be an Australian tax resident.

In practice the answer to the first two tests can usually be more easily and objectively determined. However whether a person resides in Australia, is domiciled in Australia or has a permanent place of abode outside of Australia can be a more difficult question.

For example some of the indicators of ‘residing’ in Australia can be as simple as the following:

Some of the type of actions that would contribute to establishing a permanent place of abode outside of Australia would be:

In determining whether an individual is an Australian resident or not, all circumstances need to be considered on a case by case basis.  As the concept of residency is integral when determining an individual’s tax obligations, it is important that an individual seek appropriate advice to confirm this prior to undertaking material transactions.

This information has been prepared in good faith, is in the nature of general comment only, and neither purports, nor is intended, to be advice on any particular matter.  You should not act or rely upon any matter or information contained in or implied without taking appropriate professional advice which relates specifically to your particular circumstances.  The authors and consultants expressly disclaim all and any liability to any person (whether a reader or not) who acts or fails to act as a consequence of reliance upon the whole or any part of this information.