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Question: donatello is an australian citizen living and working in australia...

Question details

Donatello is an Australian citizen, living and working in Australia. In February 2020 Donatello was offered an employment contract in Hawaii. As a result, Donatello departed Australia in April 2020 to undertake the employment contract in Hawaii, shipping his household and personal affects with him. Donatello does not own any Australian real property and had rented a house whilst living in Australia.

When Donatello arrived in Hawaii, his employer provided Donatello with temporary accommodation; however, Donatello secured a two-year rental contract for a house soon after. Donatello does not intent to return to Australia and notified Medicare of his departure, as well as suspending his private health insurance in Australia. Donatello is not eligible to contribute to the relevant Commonwealth super funds.

REQUIRED:

Advise Donatello of the tax consequences from the above fact situation, by answering the following three questions.

1. Analyse whether or not Donatello is a resident of Australia for tax purposes for the 2020 income year. (12 marks)

2. Explain the consequences of your analysis in Part (i) of this question. (3 marks)

3. Discuss the relevant source rules applicable to Donatello's circumstances. (3 marks)

Your answer should include references to appropriate legislation, case law and tax rulings.

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