Private ruling: residency
Published: November 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Question and answer | Are you a resident of Australia for taxation purposes? | No.

Relevant facts and circumstances: You have gone overseas to work. You live with your spouse overseas. You intend to be in your current employment until you retire. You do not intend to return to Australia in the near future to live. You have returned to Australia for a short visit over the Christmas period to visit your adult children. Your residence in Australia is being looked after by one of your children. You have a rental property in Australia. Neither you nor your spouse has ever been a Commonwealth Government employee.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Subsection 995-1(1)

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of 'resident' within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: 1. the resides test 2. the domicile test 3. the 183 day test 4. the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes. The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.