Is an Australian drivers licence taken in Consideration when determining tax residency?
For example a person lives outside of Australia for 10 years but they have maintained an Australian drivers licence the entire time simply so they can rent a car and drive in Australia easily when they visit.
Is this a detail the ATO could use to claim that this person is a tax resident of Australia? Or can non tax residents maintain an Australian drivers licence?
Tax residency is determined through application of the residency tests. There is no mention of driver's license or Medicare card in the residency tests. This link details how to work out your tax residency. https://www.ato.gov.au/calculators-and-tools/tax-return-work-out-your-tax-residency
Tax residency is determined through application of the residency tests. There is no mention of driver's license or Medicare card in the residency tests. This link details how to work out your tax residency. https://www.ato.gov.au/calculators-and-tools/tax-return-work-out-your-tax-residency
Thanks for taking the time to reply, I appreciate it.
The reason I ask is I have read through details of cases where the commissioner has taken into account a person renewing their Australian drivers license as a determining factor of their tax residency. Specifically saying the fact they renewed their Australian drivers license points to their intention to reside in Australia. If an Australian drivers license is not a determining factor then why would the commissioner use it as a determining factor?
Thanks again for your help.
I would assume when the residency tests don't provide an answer to the question of an individual's residency status then other factor's are considered. That's when the holding of a driver's license may be considered, but that doesn't mean if you hold an Australian driver's license you would be considered a tax resident. It is nonsensical to consider all those Australians who have emigrated to other countries (who hold a driver's license) to be considered as tax residents of Australia.
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