Private ruling: Residency for tax purposes
Published: August 2012
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016
Date scheme commenced: 1 July 2011

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

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You have a permanent position overseas. Your family accompanied you overseas. You and your family have resident permits for the overseas country. You are renting a property overseas. You plan to return to Australia to visit family for 2 weeks of each year. You have taken leave without pay from your current employer for a number of years. You intend to work overseas beyond your leave without pay. You have rented your home out in Australia. You have sold some of your belongings in Australia. You have taken your name off the electoral roll. Neither you, nor your spouse, are Commonwealth government employees.

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: · the resides test · the domicile test · the 183 day test · the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes from when you left Australia. 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.