Private ruling: Residency
Date of advice: 20 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes. Based on the facts you have provided we can conclude that you will satisfy the tests for residency. Accordingly, you are a resident of Australia for income tax purposes under section 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). | Q2: Are you a temporary resident of Australia for taxation purposes? | A2: Yes. Section 768-910 of the ITAA 1997 provides that ordinary income derived from a foreign source (excluding employment related income and capital gains on shares and rights acquired under employee share schemes) and is exempt from income tax in Australia when derived by a temporary resident in Australia. Therefore, as you are a temporary resident of Australia for taxation purposes, any foreign sourced income you have derived will be exempt from income tax in Australia under section 768-910 of the ITAA 1997. This income is not required to be declared in your Australian income tax return.

Relevant facts and circumstances: You were born in Country Y. You are a citizen of Country Z. You are not a permanent resident of any other country. You and your family moved to Australia in the 20XX income year. You entered Australia on a temporary visa. You are not a resident of Australia within the meaning of the Social Security Act 1991 . Your spouse is not a resident of Australia within the meaning of the Social Security Act 1991 . You initially stayed in hotel accommodation for a number of weeks until you secured a rental property. You have lived in the same rental property for the entire period you have been in Australia. You and your spouse found employment in Australia. You had a flat in country Z which is being rented out. Prior to arriving in Australia you and your family were living in Country X. You have not left Australia since arriving. Your child has been attending a local school in Australia. You and your spouse are not eligible to contribute to the PSS or the CSS Commonwealth super funds.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 subsection 995-1(1)