Private ruling: Residency for tax purposes - departing Australia
Date of advice: 30 April 2020
Published: June 2020
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 3 June 2016

Ruling: Q1: Are you a resident of Australia for income tax purposes from June 2016. | A1: No. Having regard to your circumstances as a whole and giving consideration of the residency tests you are not a resident of Australia for income tax purposes from the date you departed Australia. Further information on residency can be found by searching 'QC 33232' on ato.gov.au

Relevant facts and circumstances: You moved to Country X in early 2016 to commence full time employment on a permanent contract for an ongoing and indefinite period. You obtained an employment resident visa which allowed you to work in Country X. Your family accompanied you and also obtained visas for Country X. You secured a long term lease with annual renewal in Country X. You purchased some items in Country X and also shipped your family's belongings from Australia. You opened a bank account in Country X. Your children were enrolled in a local school. You were employed in a permanent position with a company in Country X. It was your intention to reside in Country X permanently. You sold the family home in Australia. You retained bank accounts in Australia and notified the bank to apply non-withholding tax as you no longer were a tax resident. Your spouse and children returned to Australia in late 2016 and remained in Australia because your spouse became seriously ill and was hospitalised. Your spouse was treated in Australia from early 2017 to mid 2017. During this period you returned to Australia to visit your spouse who was unwell, staying for only a few days on each occasion. Your family returned to Country X with your spouse seeing a specialist in Country X. Your family relocated back to Australia to a climate more beneficial for your spouse's health issues in early 2019. You continued to work for your employer in Country X and live at the same address, making short infrequent trips to Australia to visit your family. Your family relocated back to County X in late 2019 following your spouse's health improvement and the children were re-enrolled in school in County X.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1)