Knowledge Blog

There’s no place like home ….especially when you can establish that ‘home’ is not Australia for tax purposes. The ATO’s commonly-held approach that everyone is a resident forever no matter what (and they will hold their breath and stamp their feet until you agree) has led to many court challenges. The issue generally revolves around whether someone has established a ‘permanent place of abode’ out of Australia. While this is a complex area that you should always seek advice on, the Federal Court has recently ruled that where you live is more important than the type of accommodation you live in. In this case, it was about someone living in a fully-furnished apartment for many years being considered to have a permanent place of abode in sunny Bahrain. See ABC News article here for more.