Download free sample Order new solution

Taxation Law

As Yvonne wants to understand her tax situation, she first is required to acknowledge if she is a resident of Australia for tax purposes or not. The terminology of "resident of Australia" or just "resident" has been defined by the Income Tax Assessment Act 1936 in subsection 6(1).

Yvonne Merrick is a British citizen who left Britain and moved to Australia on a working visa on January 2015. On 10 July 2017 she travelled back to the UK for personal reasons and worked in odd jobs until 1 April 2018 when she returned to Brisbane and resumed her position at the hospital. Merrick bought and maintained a permanent residence in Brisbane and holds an Australian bank account (ATO 2020). The taxation period in Australia starts on 1 July and ends on June 30 (Income Tax Assessment Act-1997 2020).

Resides test

1. For the taxation year 2017/18

The primary test of tax residency is called the 'resid....