Question 2: Residency/Source (10 Marks)

Mike works as an Accountant from Singapore and is on the highest marginal rate of tax in Singapore. Mike and his wife are Australian Citizens, their twin boys attend Geelong Grammar as boarders, the boys spend the weekends with grandparents and fly back home for holidays. Mike flies into Melbourne for specialist surgery and last year he visited on 6 occasions, staying for a total of 17 weeks and earned $205,000 in medical fees. He has substantial investments in Singapore and also owns a commercial property in Hong Kong, and this financial year received $110,000 in rent but had to pay $33,000 in tax to the Hong Kong tax authority.

Advise Mike on his Australian tax obligations.