Residency for Tax purpose

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RachATO · Answer

Your tax residency status is a self-determined assessment, so we aren't able to provide a precise answer in regards to your domicile unfortunately. You may have seen that we provide the necessary information and tools on our website, and I'll include some links further down, including an online 'questions and answers' determination tool that should take about 5-10 minutes to help form an answer. As for the amount being sent from the family trust, your reporting obligations ultimately depend on your tax residency status, and the intention behind the money being transferred to you (whether it's sent as a loan, a payment that you're entitled to as a beneficiary of the family, or as a genuine gift). Gifts are not considered as assessable income for tax. For example, if you determine that you're a foreign resident for Australian tax purposes, then you'll only be taxed on your Australian sourced income. So, if the money being issued to you isn't a gift, and the family business/ trust is based overseas, then you wouldn't need to declare it as income on your tax return. However, if the family business/ trust IS in Australia, then you may need to declare it. Additionally, if you are an Australian tax resident, and the payment isn't a gift, then you may need to declare this amount regardless of where the business/ trust is located in the world. Note that I use the word 'may' in two scenarios there. The reason being if family trust distribution tax has already been paid, then you wouldn't need to declare the distribution paid to you. This is outlined under 'Income from a trust'. Hopefully this provides enough information for you, but please reach out if we can help further :) Links ATO website- Your tax residency ATO website- Residency examples ATO website- Residency and source of income ATO website- Income from a trust ATO website- Income you must declare Forum Post- Tax residency RachATO

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