To Alan Collet,

I am concerned about a quotation you make in the fact sheet Your Liability to Income Tax in Australia which states that 'a migrant who comes to Australia with the intention of residing permanently is a resident from the date of arrival.' In the standard format letter sent out by the AHC in acknowledging my application for a Former Resident (Migrant) Visa, they explain the requirement to enter Australia by the Initial Entry Date and go on to explain further that '...if a visa is granted to you and you are not able to migrate wholly to Australia by your Initial Entry Date because, for example you need to sell your house, you must still enter Australia by the Initial Entry Date. You can then depart and return to Australia at a later date..' I anticipate that it will take up to a year to sell my house and wind up my affairs, before I can return to Australia. At what point do I become a resident for tax purposes - on the first arrival (which could have serious implications) or at the point when I 'return at a later date ' to take up permanent residence?

sincerely

Neil Cargill

Yes this is a question likely to affect many people who have a short time to make initial entry. We went to Oz to validate our visas and are now to Oz permanently in January 2004.

Do ATO offices provide advice? (Unlike Inland Revenue in the UK)>

Tax residency is a relatively qualitative concept. This said, the mere validation of your visa would not trigger tax residency.

By contrast, moving to Australia and renting/buying a property in which you live, starting work, children starting school, etc would indicate that you have settled in Australia, and are tax resident.

Best regards.

Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia

To Alan Collet,

Many thanks. That puts my mind at rest.

rgds

Neil Cargill