Tax Residency Rules

The Income Tax Assessment Act (1936) provides a framework for determining tax residency and there are also Income Tax Rulings and case law which can assist individuals to determine whether they are tax resident or not.

The definition of “resident or resident of Australia” is defined within Section 6 of ITAA (1936) and can be viewed here.

There are four tests for residency contained in the definition. They are:

• The ‘resides test’
• The ‘domicile test’
• The 183 day rule; and
• The superannuation test.

If you satisfy any of the above tests, then you are resident of Australia for tax purposes.