QUESTION 2

Section 6(1) of the 1936 Act defines Australian resident as it relates to individuals as follows: ‘"resident" or "resident of Australia" means -

(a) A person ... who resides in Australia and includes a person –

i. Whose domicile is in Australia, unless the Commissioner is satisfied that his permanent place of abode is outside Australia;

ii. Who has actually been in Australia, continuously or intermittently, during more than one-half of the year of income, unless the Commissioner is satisfied that his usual place of abode is outside Australia and that he does not intend to take up residence in Australia; or

iii. Who is [a member, spouse or child under 18 of a member of certain Commonwealth public service superannuation funds]’ (underlining added). 

REQUIRED:

Discuss the difference between ‘permanent place of abode’ and ‘usual place of abode’ with reference to the residency requirements stated in s6(1) ITAA36 and reproduced above. Ensure your answer includes a discussion of the context in which it is referred.