Mid-year arrival, foreign salary and Singapore rental

Residency is decided first under the ordinary concepts test, then the statutory tests. Mei is likely a resident from 1 September 2024. She arrives with her spouse and children, signs a two-year lease, enrols the children in school, and her spouse takes full-time work. Those facts point to a permanent place of abode in Australia and an intention to reside here, even though the visa is temporary and she keeps the Singapore apartment. The 183-day test is also satisfied because she is physically present for 312 days, and the permanent place of abode outside Australia exception is weak: the Singapore apartment is rented out, and her family is in Melbourne. Domicile is not decisive because she is not Australian-domiciled, but the permanent place of abode limb supports residency. The conflict is resolved by treating the ordinary concepts conclusion as primary; the 183-day test is a deeming provision that can confirm, not override, the ordinary concepts result. Advise Mei to document the move, lease, school enrolments and family arrangements.

Once resident, Mei is taxed on worldwide income. The $80,000 paid for work performed in Singapore before 1 September 2024 was derived before residency and is foreign-source; it is not assessable because she was not a resident at derivation and no source in Australia is present. The $120,000 paid for 1 September 2024 to 30 June 2025 is different: she was a resident when the income was derived, so the whole amount is assessable, including the $30,000 for the six weeks worked in Singapore. Residence, not the place of work, determines the inclusion. The $18,000 net Singapore rent is also assessable on a worldwide basis. Foreign income tax paid can be claimed as a foreign income tax offset, capped at the Australian tax payable on the double-taxed amount. Mei should separately identify Singapore tax on the post-arrival salary and on the rent; the $2,400 rent tax is a clear FITO. The tax on the $80,000 pre-arrival salary is not creditable against Australian tax because the income is not assessable. Medicare levy is generally payable by residents, but a 482 visa holder may not be entitled to Medicare benefits; if she is not, she may claim a Medicare levy exemption or reduction. That is a separate eligibility question and should not be assumed from tax residency.

As an Australian resident, Mei is subject to CGT on foreign real property. The apartment is not taxable Australian property, but residency brings it into the CGT net. Because she acquired it before becoming a resident, the cost base is generally reset to market value at the date she became a resident (1 September 2024), unless an earlier residence rule applies. That step-up can reduce the gain. She cannot use the main residence exemption because she did not live there and it is rented. The 50% CGT discount may be available for the period after she became a resident, but the discount percentage depends on her residency and holding period; the pre-residency period is not automatically discounted. Foreign tax paid on the sale may generate a foreign income tax offset. Records of the 1 September 2024 market value, purchase cost, improvements and selling costs are essential. If she ceases residency later, the CGT rules for foreign residents may change the treatment.