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Before determining the tax consequences of the various transactions highlighted, it is 
imperative to determine the tax residency status of Eliza. This is imperative because of the 
difference in tax provisions that are applicable to the Australian tax residents in comparison 
to the foreign tax residents. This has been outlined in the section 6-5(2) and section 6-5(3), 
ITAA 1997. Section 6-5(2) opines that for a Australian tax resident, income arising from all 
the sources could potentially contribute to assessable income irrespective of the underlying 
geography where the income source may be located. This is sharp contrast with the relevant 
provision i.e. section 6-5(3) applicable for foreign residents as per which they are taxed only 
on income derived from Australia and any foreign income is tax exempt (Barkoczy, 2015). 
Based on the information given, it seems reasonable to assume that Eliza possesses an 
Australian domicile. With regards to determining the tax residency of the concerned taxpayer, 
TR 98/17 suggests the following four tests which can be applied (CCH, 2013). 
 Superannuation Test 
 183 days Test 
 Reside Test 
 Domicile Test 
Out of the above four tests, the one relevant for Eliza would be the domicile test. With 
regards to passing the domicile test,

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