Private ruling: Residency of Australia for taxation purposes
Date of advice: 25 June 2018
Published: September 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Are you considered a non-resident of Australia for income tax purposes from 20XX? | A1: Yes | Q2: Were you considered a dual resident for the period from 20XX until 20XX | A2: Yes

Relevant facts and circumstances: You were an Australia citizen and resided in Australia prior to moving to Country A in 20XX. You legally separated from your spouse in 20XX and your spouse and your children remained in Australia. You assumed a role as a relevant Officer with your employer 20XX. You signed a six month lease for an apartment in Country A from 20XX to 20XX. You relocated to Country B on 20XX. On 20XX you signed a twelve month lease agreement for a property in Country B from 20XX to 20XX. On DDMMYY you signed a two year extension to the lease from early-mid 201X to early-mid 202X. You fully furnished the property in Country B and did not leave any belongings in Australia. You received Country B residency for tax purposes on 20XX. You have visited Australia on several occasions throughout the 20XX and 20XX financial years but did not exceed 183 days in either year. You engaged an Australian law firm to commence divorce proceedings on 20XX. The divorce was settled early 20XX. You transferred ownership of your vehicle to your ex-spouse late 20XX. Ownership of the main residence was transferred to your ex-spouse in mid 20XX. You have not maintained any personal investments after leaving Australia. You are a registered professional in Australia until late 20XX. You are a registered professional in Country A until mid 20XX. Neither you nor your spouse were or are Commonwealth employees. Your name has been removed from the electoral roll. You have notified any Australian financial institutions that you are a foreign resident. You have a bank account in the Country B. You obtained a Country B drivers licence early in 20XX and surrendered your Australian drivers licence in 20XX. You do not maintain any social ties in Australia other than your family and have cancelled your Australian memberships. You are a member of an Organisation A in Country B from mid 20XX and a registered professional in Country A from mid 20XX.

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

Reasons for decision: Summary: Section 995-1 of the Income tax Assessment Act 1997 (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 not satisfy any of the tests of residency. Accordingly you are not a resident of Australia for income tax purposes from mid 20XX under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936 and a dual resident of Australia and Country A from early 20XX until your residency of Australia ceased.