The fine line in residency: Contrasting the decisions in Harding and Quy - UPDATED

This summary outlines the key differences in two decisions regarding individual tax residence (Harding and Quy), each involving an engineer working overseas while retaining a home in Australia. This update reflects the outcome of the appeal to the Federal Court in 2026. The appeal upheld the Tribunal’s conclusion. The crux of the decision is that the taxpayer in Quy did not establish to the satisfaction of the Tribunal (in the shoes of the Commissioner), that he had abandoned residence in Australia, and this was a necessary element to conclude that he had established a permanent place of abode in another country.