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

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

Relevant facts and circumstances: You were born in Australia and are an Australian citizen. You have adult children in Australia. You departed Australia to take up a two year overseas employment contract in a previous overseas country. When your position in the previous overseas country became redundant you accepted a new position in the current overseas country. You travel to Australia three times a year to see family. You have rented an apartment in the overseas country. You have a car in the overseas country. You have no property, bank accounts, or any other assets in Australia. You do not have any sporting or social ties in Australia or overseas. You have never been a Commonwealth Government of Australia employee.

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

Reasons for decision: Summary: An Australian resident for tax purposes is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) 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, which provides four tests to ascertain whether a taxpayer is an Australian resident for income tax purposes. These tests are: 1. The resides test; 2. The domicile test; 3. The 183 day test; and 4. The superannuation test. Given a consideration of the above facts in relation to each of these tests, you are not a resident of Australia for tax purposes.