Tax Return - Residency question

[The Passenger]

ok fellas quick question, have finally got my group certificate so am doing my tax return.

i'm australian citizen by birth but left on holidays in December last year.

For the question, are you an australian citizen for income tax purposes, do i answer

a) Yes
b) Part resident of 6 months

I would've assumed (a) but my old man reckons (b) and i can't find any information on this on the ato web-site.

 

[Bobby Beecroft]

Depends on your intentions.
A holiday is different to taking up a permanent residence overseas (rather than continual travel), which you would assume occurred if you were only a part time resident in Australia.
Did you earn income on the holiday or was it a genuine holiday?

Part time resident means that your get a pro-rata tax free thresold, so thats a disadvantage.
Advantage = medicare levy is charged on a pro-rata basis.
On the whole I would say its beneficial to be a resident, when considering these 2 aspects.

For the sake of the exercise I would say given the information provided that you are full year resident.

 

[The Passenger]

yeah i worked while overseas in Ireland on my VISA but i paid taxes to the Irish government on the money i earnt in Ireland.

I only worked up until end of September as well because i spent 6-8 weeks bludging and doing a bit of travel around Australia...

 

[Moo]

Over 180 days out of the country to be a non-resident ...is the first barrier.

How long were you away for?

 

[Bobby Beecroft]

Theres in fact 3 tests:

1-Domicle/Permanent place of abode test
2-183 day test
3-Commonwealth Superannuation fund test

If you pass one then you are a resident of Australia for taxation purposes.

Just because BT was out of Austrlia for more than 183 days does not mean he is a part year resident or non-resident in Australia for the year.
Wish it was that simple but there are many tax rulings & cases that show this is not the case.

 

[Moo]

Theres in fact 3 tests:

1-Domicle/Permanent place of abode test
2-183 day test
3-Commonwealth Superannuation fund test

If you pass one then you are a resident of Australia for taxation purposes.

Just because BT was out of Austrlia for more than 183 days does not mean he is a part year resident or non-resident in Australia for the year.
Wish it was that simple but there are many tax rulings & cases that show this is not the case.

Agreed ...thats why it was the first barrier.

 

[morgoth]

Oh good the old residency test! (is it still section 51(1)?)

Your permanent abode would be Oz by the sound of it so you would be a resident by the sounds of it.

 

[Bobby Beecroft]

Bugger off Morgoth.
Don't go ruining my vision of you as another moronic toothless Pies man

You have no right provided such wisdom.

 

[morgoth]

Ohhh Booby if you have studied tax like it sounds you have, then the old residency test got flogged! Hell I can still remember some of the case law (not the names but the principles). What was the name of the actor that they tried to tax when he did a film here?

Gawd I hated tax then but hate it more now that I have to pay it!

 

[Bobby Beecroft]

Robert Mitchum case.
Yep residency sux.