Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
_EllaPR(Newbie)Newbie
8 July 2021

Hi, I would like some clarification on tax residency during COVID please. I’ve read the COVID FAQ on the ATO website, but the last updated date seems to be April/May 2020 for most of the questions, so are they still valid?

If a person permanently resides overseas, has Australian PR visa but are non-resident for tax purposes in Australia, came to Australia for a short trip with a paid return flight, but have been stuck in Australia due to COVID, have not been working whilst in Australia, and intends to leave as soon as it is safe to do so (but have not been able to, as it is currently unsafe / their home country is in a state of emergency) - does this fall under “Non-resident for tax purposes and here temporarily�? Does the 183-day test still apply if they permanently reside overseas and have been continuously paying for the upkeep of their overseas abode during COVID?

Please advise. Thanks.

967 views
1 replies
967 views
1 replies

Most helpful response

Most helpful reply

RachATO(Community Support)Community Support
9 July 2021

Hi @EllaPR,

Unfortunately, the COVID-19 pandemic has unsettled a lot of people from their homes and families overseas, and we hope you're going okay.

In answer to your first question, yes. The resources currently online are still in place. If there are any updates to the content, you'll be able to see this as a 'Last modified' footer at the bottom of the page, otherwise the information from the last modification still stands.

I'll also quickly say that we can't actually make a full determination on your tax residency because it's self-assessed (meaning you need to determine yourself if your status has changed). So you should consider your circumstances and apply them to the resources we provide on our website, and also through the forum.

But I will go on to say the information under 'Change of residency due to COVID-19' indicates you may not be considered an Australian tax resident if:

- Your permanent place of residence is overseas, and - You intend to return back to your usual place of residence.

Although the same segment also mentions that this applies if you've been in Australia for some weeks or months, if you can establish that your usual residence is outside of Australia, and you have no intention to reside here, then the 183 day test wouldn't apply, even if you've been here for more than half of the income year.

All the best with this, and take care until you can return home.

All replies

Most helpful reply

RachATO(Community Support)Community Support
9 July 2021

Hi @EllaPR,

Unfortunately, the COVID-19 pandemic has unsettled a lot of people from their homes and families overseas, and we hope you're going okay.

In answer to your first question, yes. The resources currently online are still in place. If there are any updates to the content, you'll be able to see this as a 'Last modified' footer at the bottom of the page, otherwise the information from the last modification still stands.

I'll also quickly say that we can't actually make a full determination on your tax residency because it's self-assessed (meaning you need to determine yourself if your status has changed). So you should consider your circumstances and apply them to the resources we provide on our website, and also through the forum.

But I will go on to say the information under 'Change of residency due to COVID-19' indicates you may not be considered an Australian tax resident if:

- Your permanent place of residence is overseas, and - You intend to return back to your usual place of residence.

Although the same segment also mentions that this applies if you've been in Australia for some weeks or months, if you can establish that your usual residence is outside of Australia, and you have no intention to reside here, then the 183 day test wouldn't apply, even if you've been here for more than half of the income year.

All the best with this, and take care until you can return home.

Loading
Non Resident in Australia due to COVID | ATO Community