Author: PaulPA(Newbie)Newbie 25 Sept 2024
Hi TamaroATO
Thank you so much for coming back to me. I had a read through the documentation and it was very helpful. It seems as though each consideration for tax residency is considered on a unique case-by-case basis because everyone's circumstances are different?
From the examples given on the website I feel like this one would be the most similar to mine, who was declared a foreign resident for tax purposes.
See below for example for Janine
'Janine is a British national who has longed to spend 12 months 'down under'. After saving for years, she takes 12 months leave from her work and departs for Australia. Although she travels with considerable savings, her intention is to spend at least part of her time working. She has obtained a working holiday visa enabling her to work for no more than 6 months with one employer.Through a contact in Australia, she acquired work in Perth for the first 3 months. After that period, she decides to travel to the east coast via Adelaide. She spends a month in Adelaide where she works for 2 weeks and then continues her journey to Melbourne.Once there, she meets some friends from back home. After working for a further 3 months, she decides to spend the balance of her time in Melbourne and uses her savings for living expenses. To keep costs down, she leases a house with 2 friends. At the end of her 12 months in Australia, she returns to the United Kingdom and resumes living in her house there, which she had been renting out while in Australia.
Outcome– why is Janine a foreign resident? Although Janine obtains work, by travelling from place to place she hasn't established a pattern of habitual behaviour, even though she is physically present in Australia for 12 months and she co-leases a house. Janine's main purpose for being here is to have a holiday and she is merely supplementing her savings by working. Janine also fails to meet the 183-day test because she had a usual place of abode outside Australia and did not intend taking up residence in Australia.'
For my own circumstances I am coming to Australia for the purposes of a holiday on the WH Visa. I will be travelling around to different cities, exploring and seeing all the beautiful places. I could stay in one city for a few months, another for a few other months, somewhere even for less than a month etc. But throughout this time I will be in Australia but travelling around.
I have no children, I will have family back in the UK like sisters and father. I have property in the UK which I am not selling but renting out and returning to when I come home. The WH Visa only allows me to stay for 1 year and renew up to twice more but I cannot have PR or work for one employer for longer than 6 months under this visa. If I am able to continue working remotely over there for my current UK employer the work would be to fund the holiday.
All this considered - In your experience is this likely to fall under 'foreign resident' for tax purposes? Is there any official documentation I can get where someone can verify this so I do not fall foul of the tax legislation?
Thanks again
Best
Paul
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