Australian Baby Bonus

So I'm a bit confused, if you've lived in Australia for 6 months out of the year, why wouldn't you be an Australian tax resident? How could an expat claim that they are "living in Australia on a permanent basis"??
 
Like anything where you have to deal with government agencies it is not straight forward or sensible - ha ha!!! According to the government website there is no six month test (so either they have changed the rules since Spockey applied or the test still applies and they just don't bother to tell you about it until after you apply). I am actually a lawyer but I don't practice in this area of law so I am in the same boat as anyone else trying to work out what the entitlements are - i.e. confused but hopefull!!

According to the test on the government website, a claimant meets the Australian residency requirements if:
1. "the claimant has legal residence status" - i.e. has the right to reside in Aust as an Aussie passport holder or on the types of visa listed,
2. "is living in Australia on a permanent basis" -I think that given the 3 year temporary absence allowed (i.e. "eligibility may be maintained during a temporary absence from Australia for up to three years") this has to be interpreted as "intends" to live in Australia on a permanent basis. Otherwise why say that people who live outside of Australia for up to 3 years are still eligible??

So an expat, for the purposes of these specific rules, could claim that they intend to live in Australia on a permanent basis and that Australia is indeed their permanent home if they haven't been living out of Aust for 3 years. Of course this has to be a true reflection of the facts - i.e. you couldn't claim it if you intended to live in HK permanently.

Anyway, baby number 2 is due in 3 weeks so I'll apply as soon as I can after the birth and let you know how I go. Baby number 1 was born in Australia so there were no issues with obtaining the baby bonus for that one.
 
Sorry ladies, but my husband spoke to Ernst and Young today (a specialist who looks after Aussie expats) and there is no way we can claim it. When we left Australia we declared on our first tax return that we were not 'residents for tax purposes' so we would not have to pay tax in Oz on any earnings abroad. This even though we have residential properties (in Oz) that earn income for us. They are taxed independently in Australia. If you have not made this declaration then technically the Aus government can tax you on your HK income so really not worth it for $5k!
 
We declared non residency too... plus we have already been out of Australia for 2.5 years (during which time, I've only visited for a total of maybe 6-8 weeks), and definitely won't be moving back within 6 months! So I don't think it's even worth looking into for us...
 

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