CRITERIA FOR BECOMING RESIDENT IN AUSTRALIA
Advice to my client regarding His concern to be eligible to become an Australian Resident
Dear Assessee
Mr. fuki ama
sub — — (Advice on Tax Matter under Australian Income Tax Act 1936,1997)
Its a pleasure for me to guide you regarding your Income-tax matter concerning determining your residential status under the Australian Income Tax ACT, But I can only be able to pass any suggestion to you after studying the case,
So, I present you a brief note of facts and suggestion thereafter, please go through each section of fact and suggestion, I hope it may help in determining your residential status and taxable income under the Australian Income tax act
FACTS OF THE CASE
TAX PERIOD OF AUSTRALIA — 1st July 2020–31st June 2021
CONTRACT PERIOD — 1st Dec 2020- 31st May 2021
Tournament held between — 1st March — 31st August
Fuki came from japan to Australia under a contract of six months to play for a franchisee club in the Australian premier league. He took an apartment on lease for six months in Australia. He leased his furnished apartment in japan to his friends while staying in Australia, He also had a term deposit in japan of Rs 150000 and his possession is been taken care of by his parents in Tokyo japan.
He booked a one-sided ticket for coming to Australia
He came to Australia on 1st Feb 2021
As The League shall continue from 1st March 2021 till 31st August 2021, there is an utmost need for Extention of the contract of fuki ama to for playing the rest of the season
DOMICILE STATUS
As per the provision of the Australian income tax Act 1936, 1997
1- Domicile by source or origin
As you were born in Japan and not in Australia, you fail to meet the criteria in respect of domicile status as you are a permanent resident of a country outside Australia.
2- Domicile by option
As I am getting an impression regarding your intention to shift to Australia for your career growth. your impression put me in the context that you can be considered as a domicile in Australia only by the purview of choice.
As The League shall continue from 1st March 2021 till 31st August 2021, there is an utmost need for Extention of a contract of fuki ama to for playing the rest of the season
As per the provisions of Income Tax ACT 1997, Mr fuki can only be considered as a domicile of Australia if by evidence it’s evident that there is a clear intention of shifting of residence to stay in Australia for a very long time.
3- DETERMINATION OF RESIDENTIAL STATUS AS PER 183 RESIDING DAYS
As I can see you have arrived in Australia on 1st Feb concerning your contract with the football franchise team.
As per your contract, you have entered into a contract on 1st Dec 2020 and the duration of the contract is six months which means — your contract ends on 31st May.
As the duration of your contract ends it needs to be renewed on 1st June upon the condition if both parties agree to this for a further period of six months
so as per the provisions of Australian Income Tax under 1997 if someone stays in Australia for more than six months concerning his income year then he should be considered as a resident as per the Australian income tax act
As In your case, you have stayed for more than 183 days as after staying for around six months, you are still open for further extension of six months contract.
As per the provisions of Australian income tax 1997
you fulfill the criteria regarding the test of residency as per 183 days
The Residency test
As per sec 6(1) of the Income-tax assessment act of 1936, 1997
As per Birth, you are not a domicile of Australia, you came to Australia for sports purposes concerning a pre-arrangement contract.
for the residency test, your conduct decides your residency status
This relates to your daily activities in Australia which is very habitual, which is as common as your constant nature in your domicile country.
The following kinds of factors decide your fate for the residential status
1- Motive of Existence
As it can be ascertained from your intention that you are looking forward to residing in Australia, you have shown a keen interest by your efforts towards it
Indicative impressions
1- Board one-sided ticket
2- leased your furnished house to your friends
3- took an apartment on lease for six months and also had an option to further pay for six months if a contract is extended
4- from your side you are always open to an extension of the contract
SOCIAL AND PATH OF LIVING
As you have been staying in Australia for around six months, its a formality to say that you have been managing your day to day activities in the same way as in your domicile, I am sure that you have made a lot of social connection as well as interacted a lot of people as per your preference class
As a footballer, you have played for a football club
As you have made a lot of connection I am sure that you have mailed them in bulks
As per the provision of the Australian income tax Act 1936, 1997 you meet their criteria for maintaining social interaction in society.
place and preservation of asset
In your case, it can be ascertained that your place and storage of assets are situated in japan in the form of a term deposit of around 150000 and other gifts and prizes are stored and maintained by your parents
so as per the provisions of the Income-tax act 1997
you are unable to meet these criteria for residential status
After considering all possible criteria under the residency test, I got a clear message that there is a clear intention from your side regarding staying in Australia for a longer period
Hence As per the provisions of the Income Tax Act 1936, an unfulfillment of one or a few conditions cannot restrict someone from residing in Australia where there is a clear intention of residing in Australia.
Conclusion
As per the provisions of Income Tax Act 1936,1997 After studying the whole case, I concluded that yes, Mr. Fuki ama can be determined as a resident of Australia, and accordingly taxable Income can be determined for such taxpayers.