Private ruling: Temporary Residency
Published: December 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: 1. Are you a temporary resident of Australia for income tax purposes? | Yes. | 2. Is your income from overseas assessable in Australia? | No.



Reasons for decision: Summary: From 1 July 2006, temporary residents will not have to pay tax in Australia on most of their foreign income if they: • are an individual who is a resident of Australia for tax purposes, and • satisfy the requirements of being a temporary resident. Under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997), a taxpayer is a temporary resident if: • they hold a temporary visa granted under the Migration Act 1958 • they are not an Australian resident within the meaning of the Social Security Act 1991 , and • their spouse (if applicable) is not an Australian resident within the meaning of the Social Security Act 1991 . You are a temporary resident because: • you hold a temporary resident visa subclass 444 (special category visa) granted under the Migration Act 1958 • you are not an Australian resident within the meaning of the Social Security Act 1991 because you are not an Australian citizen or hold a permanent residency visa, and • you do not have a spouse . Section 768-910 of the ITAA 1997 provides that ordinary income derived from a foreign source; excluding employment related income and capital gains on shares and rights acquired under employee share schemes, is exempt from income tax in Australia when derived by a temporary resident of Australia. Your foreign source income comprising of interest income is therefore exempt from income tax in Australia as you will be a temporary resident of Australia when you derive it.

Relevant facts: You arrived in Australia from Country A. | You presented your Country A passport and entered Australia on the special category visa subclass 444. | You earned bank interest from Country A. | Relevant legislative provisions | Income Tax Assessment Act 1997 Subsection 995-1(1). | Income Tax Assessment Act 1997 Section 768-910.