Private ruling: International - Residency
Published: April 2016
Ruling period: 1 July 2012 to 30 June 2013 | 1 July 2013 to 30 June 2014 | 1 July 2014 to 30 June 2015
Date scheme commenced: 1 July 2012

Ruling: Questions and answers: | Are you a resident of Australia for income tax purposes? | No.

Relevant facts and circumstances: You left Australia for Country X for employment. You lived with family during your stay in Country X. You have residency status in Country X. You paid income tax to the Country X government during your time there. You derived no income from Australian sources during this time. You worked at two companies in Country X during your stay. You have no property or assets in Australia. Your Australian bank account was inactive for the duration of your stay in Country X. You have no spouse or dependents. You had no health insurance in Australia whilst in Country X. You returned to Australia for a general visit at one point.

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 do not satisfy any of the tests of residency. Accordingly you are not a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.