Testing the 183-day rule for residency
April 2015
The AAT has been hearing a number of cases in recent months that deal with the residency status of taxpayers who have arrived in Australian on a working holiday visa (Subclass 417) and who have been here for more than 183 days in a tax year.
In each of the cases, the taxpayer:
- Was a foreign national
- Had arrived on a temporary residence visa
- Stayed more than 183 days but less than a year
In these cases the taxpayers were actually arguing that they were residents of Australia, because as residents they would have been able to access the tax-free threshold that is not available to non-resident individuals.
Criteria for the 183-day test
Because each of the individuals had spent several months living in shared accommodation, the usual place of abode needed to be identified.
As always with residency issues, intent and documentation matter. The intention of these taxpayers was to travel and seek temporary work as part of a working holiday visa.
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Disclaimer
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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