ATO updates guidance for returning Australians

3 August 2020

The ATO has updated its guidance on tax residency and source of income issues for returning Australians. It has also referred taxpayers to its two main tax rulings on residency. Guidance is also provided for people who are continuing to work in Australia as to whether that income would have an Australian source.

Further to its guidance issued earlier this year the ATO has updated its guidance on tax residency and source of income issues for returning Australians. It has said and continues to stay that a person who is in Australia due to COVID19 will not automatically be considered a resident provided they usually live permanently overseas and intend to return to their country of Australia as soon as possible.

For the first time during the pandemic the ATO has referred tax payers to its two main tax rulings on residency being Taxation Ruling TR 98/17 – Income tax: residency status of individuals entering Australia and Taxation Ruling IT 2650 Income Tax: Residency – Permanent Place of Abode outside Australia