I am an Australian citizen and have been an Australian resident for tax purposes since I began lodging returns. In early May, I will move to the UK on a 5-year visa, with the intention of returning to Australia at the end of that period.
My Australian home has recently been listed for sale and is expected to sell within 1–2 months. However, it is unlikely a contract will be signed before I depart. Additionally, I have already sold some shares, before departing. I am seeking clarification on how these CGT events would be treated.
I understand the three residency tests. After reading through TR 2023/1 and based on my circumstances, I don't think I meet the requirements of the “resides” or “domicile” tests, but am uncertain how the 183-day test applies.
I only made the final decision to relocate after my UK visa was granted in March (more than 183 days into the 2025–26 financial year) and would appreciate guidance on the following:
- Am I considered a resident for tax purposes under the 183-day test because my intention to move overseas was only finalised after more than 183 days of the financial year had passed?
- If I cease to be a tax resident, am I treated as a non-resident for the entire financial year, or only from the date I leave Australia (i.e. can residency be apportioned pro rata)?
- If residency is apportioned, how would this apply to CGT events (such as selling property or shares) that occur within the same financial year, both before or after I depart Australia?
Thanks for your time.
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