Peter was born in England. In 1992 he moved to Australia with his wife. Since moving here, he and his wife have purchased a family home, opened Australian bank accounts and gained full-time employment in Australia. In 2002 they became Australian citizens for immigration purposes and were issued with Australian passports.

Peter and his wife have also maintained their English citizenship, and a small number of investments in England. In July of the current tax year, Peter obtained a job with an Australian firm, which requires him to travel and work in Kuwait for extended periods of time.

In the current tax year ended 30 June, Peter spent a total of 257 days living in Kuwait. While he is there, he resides in a small one-bedroom unit in Kuwait provided by his employer, and has obtained a residency visa for Kuwait. At the end of each work assignment (8 weeks long), Peter flies back to Australia to be with his wife at their home in Toowoomba.

In relation to the above information about Peter, which one of the following statements is most correct for the current tax year ended 30 June?

Choose one correct answer:

1. The 183 day test will apply to make Peter a non-resident for Australian tax purposes.

2. If Peter is a tax resident of Kuwait, then he cannot also be a tax resident of Australia.

3. Peters Australian tax residency is determined by whether or not his salary is taxed in Kuwait.

4. Peter would be likely to be a resident for Australian taxation purposes as his domicile is in Australia and he has not established a permanent place of abode outside Australia.

5. If Peters wife is regarded as an Australian tax resident, then Peter, for that reason, will be regarded as an Australian tax resident.