Issue 1: Billy Orange was born in Adelaide and usually resides in Adelaide with his family.

For 6 month in the 2015/16 year and all the 2016/17 income year he and his family have been living in Samoa. The children attend the local school and his wife works in the local shop while he works on a fishing boat.

They bought a house in Samoa and have stayed in the one place.

Question :Is Billy a resident of Australia in the 2016/17 year?

Issue 2:

Hans Kruger has been living in Queensland for 10 months in the 2016/17 financial year. He usually lives in Germany and is in Australia working at various mining sites throughout Queensland. He has a 12 month visa and at the end of the 12th month he intends to return to Germany and study mining engineering using the skills he has gained through working.

Question : Is Hans a resident under the 183 day test?

Issue 3:

Gregory Power is a highly regarded baseball prospect. During the American off season he first travelled to Mexico to play in the Fall League for 2 months and then decides to come to Australia and play in the Australian Baseball League in December, January and February to play for the Adelaide Chomp. He signs the contract in Switzerland, which stipulates he is to be paid $45,000 for the 3 months. He joins the team shortly after. The contract states he is to be paid monthly into a bank account in the Turks and Caicos Islands. Gregory is impressed with Australia and decides to purchase a home unit at Glenelg. His plan is to use it as a base during the home and away series and rent it out for the remainder of the income year. Discuss with reference to the residency tests and source rules whether:

• Gregory is liable for taxation on the $45,000 for his baseball skills

• Gregory is liable for tax on the rental income received during the balance of the year