Schiele and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Mr Schiele against an assessment of income tax issued by the Commissioner of Taxation for the 2016 income tax year. The central dispute was whether Mr Schiele was a resident of Australia for income tax purposes during that year. The Administrative Appeals Tribunal (AAT) was required to determine this question based on the evidence and relevant legislative provisions.

The Tribunal was tasked with determining whether Mr Schiele met the definition of a "resident" or "resident of Australia" as defined in section 6(1) of the *Income Tax Assessment Act 1936* (Cth). This involved considering the ordinary concepts test, the domicile test, and the 183-day test, and whether the Commissioner had been satisfied that Mr Schiele's permanent place of abode was outside Australia or that his usual place of abode was outside Australia with no intention to take up residence. The Tribunal also had regard to the burden of proof, which rested on Mr Schiele to demonstrate that the Commissioner's assessment was incorrect.

The Tribunal found that Mr Schiele was not a resident of Australia for income tax purposes in the 2016 income year. It reasoned that Mr Schiele's stated intention upon entering Australia was for a working holiday, with a maximum intended stay of one year, and that he had no intention to dwell permanently or for a considerable time in Australia. His activities, including extensive travel and temporary accommodation, did not establish a permanent place of abode or a settled intention to reside. Furthermore, Mr Schiele was not domiciled in Australia and had no enduring connection to the country, consistently intending to return to Germany.

Consequently, the Tribunal affirmed the Commissioner's decision under review.