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About tax residency status

Newbie

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Hello, thank you for your continuous support, please help me out with the following situation:

  • A couple were granted a PR last year.
  • They came to Australia in September 2020 to claim the first entry before it expires but do not intend to settle here yet.
  • They intend to spend only a couple of months here as a visit/vacation.
  • Due to travel complications these days, they might need to stay a couple of months longer.
  • All their assets, residency and employment remain overseas where they came from.
  • They are staying in a hotel the whole time, possibly in different locations around the country and do not intend to work or settle here yet what-so-ever.
  • While they are here they took the advise of a friend and opened a bank account, enrolled for Medicare, opened a centerlink account and applied for a TFN. (But haven't used any of them yet)
  • (They realized later that they don't need Centerlink or a TFN yet and requested the Ato to suspend/end-date the TFN for now)
  • What is their tax residency status during this time?
  • The wife gets sick sometimes, Does using Medicare benefits while they are here now effect their tax residency status?
  • Does enrolling for a private health insurance while they are visiting now effect their tax residency status?
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Most helpful response

ATO Community Support

Replies 0

Hiya @Nicole1976,

 

Residency is something that is self assessed. So we are not able to say to you, that someone is definitely a resident for tax purposes or not. The test that I think will apply is the 183 day test. Which would mean it depends on how much longer the couple end up staying.

 

Residency – the 183 day test.

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Newbie

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Additionally: I decided to post this question after trying out the all tests and tools on the ATO website, so I really hope to get an answer relevant to my exact situation.. 

Most helpful response

ATO Community Support

Replies 0

Hiya @Nicole1976,

 

Residency is something that is self assessed. So we are not able to say to you, that someone is definitely a resident for tax purposes or not. The test that I think will apply is the 183 day test. Which would mean it depends on how much longer the couple end up staying.

 

Residency – the 183 day test.