Julius Pty. Ltd. is a manufacturer of shoes incorporated in Italy and 80% of its shareholders are Italian. It exports its shoes around the world.

The Board of Directors meet once a month. In a 3 month period, the Board of Directors meet in Rome for the first 2 months, and in the 3rd month they travel to Australia. This repeats every three months. They hold a Board Meeting while in Australia and also attend other meetings in Canberra with their wholly owned Australian subsidiary, Jerrabombera Pty. Ltd.

Jerrrabomberah Pty. Ltd. is an Australian primary producer and manufacturing company that raises young cattle, pigs and goats to make sales of meat, but also to tan the hides of the animals and supply them to Julius Pty. Ltd. to make shoes in Italy.

While in Australia, the directors of Julius Pty. Ltd. enter into a contract with an unrelated company, Jolimont Pty. Ltd. that distributes shoes nationally to stores around Australia.

Julius P/L has the following receipts from Australia;

1. Sale of shares

Julius Pty. Ltd. sells 20% of its stake in Jerrabombera Pty. Ltd. and uses those funds to purchase a half a share in Jaffa Pty. Ltd. a crocodile farm, diversifying its leathers.

2. Sale of property

Julius Pty. Ltd. had purchased a property in Jundah, North Queensland and had originally intended to set up a crocodile farm. However, the directors found a better opportunity by investing in Jaffa Pty. Ltd. that would give them immediate expertise and supply. The Jundah property was considered superfluous, and Julius Pty. Ltd. sold the property.

3. Interest income

Julius Pty. Ltd. has an Australian bank account where all of its Australian business receipts are deposited and derives interest from that account.

4. Contract business income

Julius Pty. Ltd. receives income from the sale of shoes to Jolimont Pty. Ltd.

Required:

For the 2018-2019 year of tax:

(1)Advise whether Julius Pty. Ltd. is a resident of Australia, and

(2) What Australian receipts need to be included in the companys assessable income. (ignore any capital gains tax consequences)