Question
Robert, a chief executive officer of an American Company specializing in management consultancy, comes to Australia to set up a branch of his company. Robert
Robert, a chief executive officer of an American Company specializing in management consultancy, comes to Australia to set up a branch of his company. Robert was recruited for this job in Australia and signed a contract with the company in Sydney. Although the length of his stay is not certain, he leases a residence in Brisbane for 12 months. His wife accompanies him on the trip, but his teenage daughter, having just commenced college, stay in Newyork. He and his wife have a joint account with National Australia Bank in Australia. Roberts income from a consultancy is paid directly into this account. Robert rents out the family home. Apart from the absence of his children, Roberts daily behaviour is relatively similar to his behaviour before entering Australia. All his family other investments, including a share portfolio that generates dividend income, remain in the USA.
Discuss whether Robert is a resident of Australia for tax purposes and how his income from salary and investment would be taxed. (Maximum 500 words)
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