Private ruling: Main residence
Published: January 2014
Ruling period: Year ended 30 June 2013
Date scheme commenced: 2 April 2013

Ruling: Q1: Questions and answers: Are you a resident of Australia for income tax purposes for the 2013 financial year? No.


Relevant legislative provisions: Income Tax Assessment Act 1997, Subsection 995-1(1). | Income Tax Assessment Act 1936, Subsection 6(1). | Income Tax Assessment Act 1936, Section 251S. | Income Tax Assessment Act 1936, Section 251T.

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) to be 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. These tests are: · the resides test · the domicile test · the 183 day test · the superannuation test. The first two tests are examined in detail in Taxation Ruling IT 2650: Residency - Permanent Place Of Abode Outside Australia . The primary test for deciding the residency status of an individual is whether the individual resides in Australia according to the ordinary meaning of the word resides. However, where an individual does not reside in Australia according to ordinary concepts, they may still be considered to be a resident of Australia for tax purposes if they satisfy the conditions of one of the other three tests. As you were not a resident of Australia under any of the tests outlined in subsection 6(1) of the ITAA 1936 and subsection 995-1(1) of the ITAA 1997 for the 2012-13 financial year, you are not an Australian resident for income tax purposes for this period.

Relevant facts: You came to Australia midway through 2013 | Your initial intention was to finish a short term employment contract and return overseas. | You intentions changed in the 2013-14 financial year.