Private ruling: Residency
Date of advice: 18 March 2020
Published: May 2020
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia and the Country A. You relocated to Country A. You moved to Country A for a suitable job opportunity and you intend to stay in Country A indefinitely. You have a Country A passport with unrestricted working rights. You have taken up a full time employment in Country A. You rent an apartment in Country A and have opened a bank account. You do not have a spouse. You do not have any dependents. You were renting in Australia prior to your departure. Your personal items are stored at your parent's house in Australia. You only intend to return to Australia to see your family for a short period every year. You hold a long-term deposit in Australia. You have advised your Australian bank about your residency status. You do not have any investments in Australia. You do not have private health insurance in Australia. You do not have any social or sporting connections with Australia. You will be advising the Australian Electoral Office to have your name removed from the electoral roll. You will be advising Medicare to have your name removed from their records. You have never been a Commonwealth Government of Australia employee for superannuation purposes.

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

Reasons for decision: Summary: Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for taxation 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 (and permanent place of abode) test, · the 183 day test, and · the superannuation test. The first two tests are examined in detail in Taxation Ruling IT 2650 Income tax: residency - permanent place of abode outside Australia. Thelatter two tests are relatively self-explanatory as they require the individual to either be physical present in Australia for a period greater than 183 days or be eligible to contribute to the PSS or CSS superannuation schemes. 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 not satisfy any of the tests of residency. Accordingly you are not a resident of Australia for income tax purposes.