In: Accounting
Sheridan finished her degree at the end of 2018 and left Australia for a working holiday. At the time of her departure she did not know when she would return. She worked in Paris for 3 months, travelled around Europe for 6 months before returning to Paris to work for another 3 months. She then travelled to Brazil where she intended to work for 12 months. During the time in Brazil, Sheridan became ill and had to come back to Australia after only 6 months. While overseas she rented rooms in share houses while working and youth hostels while travelling.
Required: With reference to relevant legislation, case law, and/or ATO Rulings, advise Sheridan on her residence status for tax purposes. Why is this important?