What does "tax residency" refer to in the ATO Green Book?

"Tax residency" in the context of the ATO Green Book refers specifically to the status of an individual or entity for tax purposes. This status determines how a person or entity is treated under tax law, specifically regarding their obligation to pay tax on their income.

Tax residency is a critical concept because it can affect a taxpayer's liability for Australian tax and whether they qualify for various tax credits, deductions, and other benefits. It often involves considerations such as the physical presence of a person within a certain timeframe, their connection to Australia, and various legal definitions of residency.

While geographic location, citizenship, and temporary arrangements can all influence tax residency, they do not define it. The focus is on the status for tax purposes, which determines the extent of tax obligations and rights under the law.