Private ruling: Residency for tax purposes
Published: November 2012
Ruling period: Year ended 30 June 2012.
Date scheme commenced: 1 July 2011.

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

Relevant facts and circumstances: You are an Australian citizen. Your country of origin is Country Y. You departed Australia for Country X several years ago. You are now a permanent resident of Country X. You have permanent employment in Country X. You live in Country X with your spouse. Your spouse is a citizen of Country X. You return to Australia one to two times a year. You have bank accounts and a life insurance policy in Country X. You do not have a home in Australia. Prior to departing Australia you lived with a family member. When you return to Australia to visit you stay with a family member. You have bank accounts, superannuation and a small parcel of shares in Australia. Neither you, nor your spouse, have ever been Commonwealth government employees.

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

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.

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.