Private ruling: Residency status
Date of advice: 21 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2020
Date scheme commenced: The scheme has commenced

Ruling: Q1: Am I a resident for tax purposes? | A1: Yes Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms ‘resident’ and ‘resident of Australia’, in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are: ● the resides test, ● the domicile test, ● the 183 day test, and ● the superannuation test. If any one of these tests is met, an individual will be a resident of Australia for taxation purposes. Based on the facts you have provided, we can conclude that you will satisfy the Domicile test for residency. Accordingly you are a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

Relevant facts and circumstances: ● Client is currently in Country X on a visitor’s visa and has been since they left Australia on xx xxxx 20xx. ● Client has suffered from a health issue that has stopped their return to Australia. ● Client is attending a nursing home for constant medical care. ● Client has no physical assets in Country X. ● Client’s home and car are in Australia. ● Client never intended to stay in Country X.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Subsection 995-1(1)