Over the last 7 months Jim has worked in various jobs
. Over the last 7 months Jim has worked in various jobs in Sydney staying with various friends and relatives then he went traveling down the east coast of Australia . At the end of September 2020 , he left for New Zealand and intends to go back to the United States in 2022 . Advise Jim as to whether or not he is a tax resident of Australia . Explain your answer with reference to the relevant legislative provisions , case law and the relevant guidance provided by the ATOstatic/image/hrline/1.gif
Individual J is considered to be a resident of Australia, as he fulfills the conditions of 183 days test. Individual J arrived in Australia on December 1 and left Australia during September end. So, the individual J has stayed in Australia nearly 10 months. The income year in Australia starts from July 1 and ends on June 30. In the income year of 1 July, 2019 to 30 June, 2020, the individual J has stayed in Australia nearly 7 months (from December to June) which is more than 183 days. And in the next income year, the individual stayed in Australia nearly 3 months (from July to September). According to ATO, the individual J is having constructive residence, as the individual stays in Australia for more than 183 days in the income year of 1 July, 2019 to 30 June, 2020.
Step-by-step explanationIndividual J is having constructive residence in Australia, as he stays in Australia for more than 183 days i.e., half of the income year of July 1, 2019 to June 30, 2020. He continuously lived in Australia for nearly 10 months. He stayed 7 months in the income year of July 1, 2019 to June 30, 2020 and 3 months in the next income year of July 1, 2020 to June 30, 2021. As the number of days of stay is more than 183 days, he is considered to be a resident of Australia with constructive residence.
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