Private ruling: Residency status - non-resident - left Australia permanently to work overseas.
Date of advice: 9 December 2019
Published: February 2020
Ruling period: Year ended 30 June 2019

Ruling: Q1: Were you a non-resident of Australia, for taxation purposes from the 1 July 2018 until the 30 June 2019? | A1: Yes. Having considered your current circumstances as a whole and the relevant residency tests, you are considered a non-resident of Australia for taxation purposes.

Relevant facts and circumstances: You were born overseas and arrived in Australia several years ago on a spousal visa. You and your previous spouse have children together and are dependent on you. Following your divorce, you transferred to an individual visa and became an Australian citizen in the following year. After the divorce, you attempted to develop businesses in Australia with no success. You were offered a position in an overseas country, by professional contacts in your area of expertise and accepted the offer. You departed Australia with no intention of returning. Once arriving in overseas you proceeded to set up your new life which included; applying for permenant residency which was granted, opening a bank account, obtaining medical cover, joining a sports club and finding accommodation. You have provided your current overseas rental address. You are leasing a property there. You have cut all ties with Australia. This included notifying the companies that you were employed by that you were leaving the country, cancelling your private health insurance policies and only holding one bank account to transfer money into the country for your dependent children. When you return to Australia to see your children, you stay in rental accommodation. You spent less than 183 days in Australia during the financial year for family reasons. You do not own any real Australian property and hold no personal assets in Australia. You are not a member of a Commonwealth Superannuation Fund. Your employment contract is valid for a set term with an option to extend the contract.

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