Question

Maria is a citizen of Vanuatu. In July 2018, she comes to Australia on a four year work visa. She lives in Brisbane and rents an apartment near her workplace. She works as an accountant in a local firm receiving an annual salary of $80,000. Even though she can stay for four years, Maria plans to return. to Vanuatu in about 18-20 months. In November 2018, Maria sold her investment property in Vanuatu and made a capital gain on the sale of the property. Which of the following (if any) are true? (a) Maria must pay tax on her accountancy firm salary at residency rates; (b) Maria would be a resident of Australia under the common law resides test; Maria would have to pay tax on all worldwide income including the capital gain sourced to Vanuatu; (d) Maria would not have an Australian domicile on these facts (e) Only (a), (b), (d) (f) Only (a) and (b).

Answer 1

Answer is as under :

Option (F) only (a) and (b)

Reason : Maria established that she intended to live in Australia for 4 years and she comes to Australia for job with her behaviour over the 18 -20 months is consistent with the intention, Hence maria would be resident of Australia under the common law resident test. A person who enters into Australia for more than 6 months with the intention of remaining more than 6 month is resident person.

And hence she is liable to pay tax on her accountancy firm salary at the residenecy rates