Private ruling: Residency of Australia for taxation purposes
Date of advice: 20 May 2019
Published: July 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No .

Relevant facts and circumstances: You were born in Country Y. You are a citizen of both Australia and country Y. You have been living and working outside Australia since the 20XX income year. You and your spouse have divorced. You have two adult children living in Australia. You have lived and worked in a number of countries since living Australia in 20XX. You have been living and working in Country Z since mth/20XX. You have an open ended contract in Country Z. You have a permanent visa to stay in Country Z. You are intending on purchasing a property in Country Z. You currently rent a property in country Z which is paid for by you and is for your sole use. You took all your personal items and household items to country Z. You have only returned twice to Australia in the 20XX income year and these visits did not exceed 183 days. You are the sole director of an Australian company; the company has had no business activities since mth/20XX. You have bank accounts and a superannuation fund in Australia. You have no property in Australia. You have some small items left in Australia which are being stored. You are a resident of country Z for taxation purposes. You are not eligible to contribute to the PSS or the CSS Commonwealth super funds.

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 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. 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 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 under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.