Private ruling: Residency of Australia for taxation purposes
Date of advice: 14 March 2019
Published: May 2019
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 June 2016

Ruling: Q1: Are you considered a resident of Australia for income tax purposes for the period from mid 20XX to early 20XX? | A1: Yes Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that 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. Section 995-1 of the 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 will satisfy both the resides test and the 183 day test of residency. Accordingly you are a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936 for the period between mid 20XX and early 20XX.

Relevant facts and circumstances: You arrived in Australia on mid 20XX on a visa. You were accompanied by your partner. Late 20XX you applied for an extension to the visa, which was granted. During your time in Australia you were employed by an overseas university. Your purpose in Australia was to work at a university. You rented accommodation and had Australian bank accounts while living in Australia. You left Australia permanently early 20XX.

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