Private ruling: Residency
Published: February 2013
Ruling period: Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016
Date scheme commenced: 1 July 2012

Ruling: Question and answer | Are you a resident of Australia for income tax purposes? | No.

Relevant facts and circumstances: You have taken up an employment contract in a foreign country. The employment contract is for an initial period of seven years with the possibility of an extension. You intend to live and work in the foreign country for the foreseeable future. You intend to find a partner and start a family in the foreign country. You are leasing an apartment in the foreign country and intend to purchase a residence in the future. You have obtained a drivers licence in the foreign country. You do not have any intention of returning to Australia in the foreseeable future. You do not have a spouse or children in Australia. You are no longer on the Australian electoral role. Your Australian assets consist of an investment property and a superannuation account. You have never been employed by the Australian Commonwealth government.


Reasons for decision: Summary: Generally 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. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes. You are a foreign resident from the time you left Australia to commence employment in the foreign country.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.