Private ruling: Residency
Published: May 2014
Ruling period: Year ending 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You travelled to an overseas country and have been there since. Throughout your time as a resident in Australia your spouse maintained professional accreditation in the overseas country. Your spouse is required to undergo a validation process in the overseas country to maintain their professional accreditation. Your spouse's revalidation must be completed in the overseas country and you are waiting for the finalisation of this. You will not be employed while you are in the overseas country. Since arriving in the overseas country you have stayed in a rental property where you will continue to stay here until you depart. Your main residence is in Australia. You have let the property out since your departure and are planning to continue this arrangement until your return. The majority of your assets are in Australia, including a rental property, land under development, and household effects which you will store in a shed and shipping containers located on your property. You have social connections in Australia through your membership in local sporting clubs and attendance at a local hall where your child plays musical instruments. You and your spouse have a self-managed superannuation fund. The assets of the self-managed superannuation fund are in Australia. You and your spouse are the directors of the Corporate Trustee of the self-managed superannuation fund.

Relevant legislative provisions: Section 995-1(1) of the Income Tax Assessment Act 1997 | Subsection 6(1) of the Income Tax Assessment Act 1936 | Section 6-5 of the Income Tax Assessment Act 1997

Reasons for decision: Summary: An Australian resident for tax purposes is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) 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, which provides four tests to ascertain whether a taxpayer is an Australian resident for income tax purposes. These tests are: 1. The resides test; 2. The domicile test; 3. The 183 day test; and 4. The superannuation test. | Detailed Reasoning - Your residency: Under the domicile test, a person is a resident of Australia if their domicile is in Australia unless the Commissioner is satisfied they have a permanent place of abode outside of Australia. Your domicile of origin is an overseas country. You have acquired a new domicile of choice in Australia when you elected to become an Australian citizen and reside in Australia permanently or indefinitely. You did not acquire a new domicile of choice by moving to the overseas country for the purpose of your spouse undergoing a revalidation process of their professional accreditation. In regards to permanent place of abode: • You travelled to the overseas country as you spouse wants to maintain their professional accreditation. Once this is complete, you have an intention of returning to Australia with your spouse. • You have arranged a rental property in the overseas country, although this is expressly related to your spouse's employment in the overseas country. • Your main residence and the majority of your assets are in Australia. • You have strong social and familial connections in Australia. Based on the reasons discussed above, the Commissioner is not satisfied that you will have a permanent place of abode while in the overseas country. Therefore, you will remain a resident of Australia under this test for the period you are overseas.