Handsley and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered the residency status of the applicant for Australian income tax purposes. The applicant, an Australian citizen, had departed Australia in July 2012 following a redundancy from his long-term employment and to commence a relationship with his partner in the Philippines. The Commissioner of Taxation had determined that the applicant was a resident of Australia for the 2013 income year.

The primary legal issues before the Tribunal were whether the applicant was an Australian resident according to the ordinary meaning of the term, and whether he had a permanent place of abode outside Australia. These determinations were crucial for establishing his tax liability in Australia on his worldwide income. The Tribunal was required to apply the principles established in cases such as *Federal Commissioner of Taxation v Applegate* to the applicant's specific circumstances.

The Tribunal reasoned that while the applicant's stated intention was to leave Australia permanently, greater weight must be given to objective factors regarding his place of abode. The evidence indicated that the applicant had accepted a 3-month contract overseas, which was extended to 11 months, requiring him to work in various countries. He spent significant periods in Vietnam, Singapore, and Malaysia, and his accommodation was short-term. Although he maintained Australian bank accounts and superannuation, sold his family home, and had family in Australia, he did not own or lease any property overseas, nor did he acquire long-term visas or residency status in any foreign country. The Tribunal noted that the concept of a "permanent place of abode" outside Australia, as per the exception to the residency test, requires the identification of a country in which the taxpayer is living permanently, and that temporary or transitory accommodation in a foreign country does not necessarily constitute a permanent place of abode.

The Tribunal affirmed the Commissioner's decision, concluding that the applicant was a resident of Australia for the 2013 income year. The applicant's circumstances, particularly his continued connection to Australia through family and financial ties, and the lack of a clearly established permanent place of abode outside Australia, led to this outcome.