Kate is an accountant who up to 1 April of the previous tax year lived and worked in China. She is single and lived in China with her parents. She accepts an offer from her employer to travel temporarily to Australia to provide business advice to large numbers of former China residents setting up businesses in Melbourne, Sydney and Brisbane. Kate comes to Australia on 1 April of the previous tax year, intending to spend three months travelling between the three cities, staying in various motels. On 1 July of the current tax year her employer asks her to take up a position in Sydney for a further nine months and she agreed to this offer. In early July, she leases a serviced executive apartment for nine months near her work place in Sydney. The apartment is her home base during her stay here. She freights more clothing and some personal effects to Australia. Her parents visit her on two occasions. In relation to Kates residency status which of the following statements is most correct?

Select one:

1.

Kate will be a resident of Australia from the date that she applies for citizenship in Australia.

2.

Kate will not be a resident of Australia up to 30 June of the previous tax year but may become a resident after that date because she resides in Australia after that time.

3.

Kate will be a resident of Australia from 1 April to 30 June of the previous tax year under the 183 day rule but not a resident of Australia after that date.

4.

Kate will not become a resident of Australia because she has a Chinese passport.

5.

Kate will be a resident of Australia from 1 April of the previous tax year under the domicile rule.