Week 2
Amandeep born in India and migrated to Australia. He lives in Australia permanently. He still holds
Indian passport. Amandeep works with the New Zealand Princess Cruises tours and most of the
income year is in New Zealand. He signed an employment contract for this position in the company’s
Australian office in Sydney. Amandeep has two kids that are living with his wife Sandeep in Sydney.
Three years ago, Amandeep purchased a unit apartment in Sydney. Amandeep and his wife holding
dividend yielding shares in an Indian public company called Hindustan Unilever. Amandeep and
Sandeep have an Australian bank account as well. Amandeep’s employer pays his salary to this bank
account every fortnight.
Biannually Amandeep receives a holiday package from his employer, New Zealand Princess Cruises
tours and he is using this package with his family traveling in Australia interstates or moves to India to
visit his in laws.
Required:
With reference to the relevant laws, discuss whether Amandeep is an Australian resident for tax
purposes and also critically discuss whether Amandeep needs to pay income tax on his salary and
investment income explained above.