Private ruling: Residency for taxation purposes
Date of advice: 29 September 2015
Published: September 2015
Ruling period: 1 July 20XX to 30 June 20YY.
Date scheme commenced: 1 July 20XX.

Ruling: Questions and answers: | Were you a resident of Australia for taxation purposes between 1 July 20XX and 30 June 20YY? | No.

Relevant facts and circumstances: You were born in Australia and you are an Australian citizen. You have a spouse and children (your family). You and your family left Australia prior to 1 July 20XX and returned after 30 June 20YY. Prior to leaving Australia you were a resident of Australia for taxation purposes. You went overseas to work. Prior to leaving Australia you and your family were living in your own home (your Australian home) Your Australian home has been rented out since you left Australia under a normal commercial lease. When you left Australia you took some possessions with you. The rest of your and your family's belongings were sold or given away prior to leaving. Your assets in Australia include real estate, cash and superannuation. You paid tax on your income in the countries you worked in. During the period you were overseas you and your family returned to Australia on three occasions for short holidays. Your residential accommodation costs in the countries you worked in were paid by your employers. Your assets in the overseas countries you worked in included the possessions you took with you from Australia, motor vehicles that have since been sold, and bank accounts that have since been closed. While you were outside Australia you maintained contact with family members in Australia. Overseas you developed social contacts, engaged in family outings and were a member of several clubs. Neither you nor your spouse, have ever been employed by the Commonwealth of Australia.

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

Reasons for decision: Summary: Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax 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 test, • the 183 day test, and • the superannuation test. 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 did not satisfy any of the tests of residency during the period 1 July 20XX to 30 June 20YY and were not a resident of Australia for taxation purposes during that time.