Private ruling: Residency
Date of advice: 24 June 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 4 May 20XX

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

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You moved to country A in 20xx to join your spouse. You entered country A as a visitor and were given the residence visa shortly after arrival. Your residence visa is renewed every X year with your spouse's visa. You and your spouse rent an apartment in country A. You own a joint bank account in country A. You have obtained your driver's licence and alcohol licence in country A. You have made the several trips to Australia after first leaving to spend time with your family and introduce your child to the family: You and your spouse jointly own a rental property in Australia, which is managed by a local real estate agent. You have notified your agent that you were leaving the country. You have advised your Australian bank about your non residency status. You have cancelled your private health insurance in Australia. You do not have any social or sporting connections with Australia. You have advised the Australian Electoral Office to have your name removed from the electoral roll. You have informed Medicare to have your name removed from their records. You have never been a Commonwealth Government of Australia employee for superannuation purposes.

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

Reasons for decision: Summary: Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for taxation 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', regarding 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 (and permanent place of abode) test, · the 183 day test, and · the superannuation test. The first two tests are examined in detail in Taxation Ruling IT 2650 Income tax: residency - permanent place of abode outside Australia. Thelatter two tests are relatively self-explanatory as they require the individual to either be physical present in Australia for a period greater than 183 days or be eligible to contribute to the PSS or CSS superannuation schemes. 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 the date you departed Australia. | Detailed Reasoning - Further information: The Commissioner does not rule for indefinite or extended periods of time as there may be changes to the facts of the arrangement or the law relating to residency. Also, a public ruling may issue which affects the private ruling. Therefore, we have ruled for the 2017FY to 2022FY.