Hi,
I am trying to determine when my wife will move from non-resident for taxation purposes (NRFTP) to Australian resident for tax purposes.
Our family will move back to reside permanently in Australia on 1/1/2027 after living overseas for several years. I am an Australian citizen. We have children. I will resume being a resident for tax purposes when we arrive on 1/1/2027. However, my wife will arrive on a Subclass 600 tourist visa with the intention of applying for a Subclass 820 temporary onshore partner visa after she arrives.
We wish to open a term deposit account under her name as soon as we arrive in Australia on 1/1/2027.
I have three questions.
1. First, will she be classed as NRFTP while still on the Subclass 600 visa, and therefore pay the 10% withholding tax on interest earned in the term deposit account. Or will she "satisfy the “resides” test from the date of arrival because tax residency depends on the nature and purpose of a person’s presence, family ties, living arrangements and intention to treat Australia as home—not solely their visa type or number of days present" and pay resident tax on this interest at whatever may be her marginal tax rate.
2. How we will determine whether the ATO views her as a non-resident for tax purposes or a resident? Do we need to ask for a ruling from the ATO on this?
3.If she is assessed as resident for tax purposes while on the Subclass 600btourist visa, how does she lodge a tax return without a TFN?
Thanks very much.
5 views
0 replies