Private ruling: Residency
Date of advice: 13 February 2019
Published: May 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au

Relevant facts and circumstances: General You were born in Australia and you are also an Australian citizen. You are not a citizen of any other country, nor have you been granted permanent residency on any other country. In early 20XX you will be moving to Country X for a minimum period of two and a half years, up to a maximum period of five years, where you will be living and working. The main purpose for your move to Country X is for employment career reasons. You will be granted a working visa whilst living and working in Country X, which is supplied through your employer in Country X and is also renewable annually. You plan on permanently returning to Australia within two and a half years to five years. You plan on returning to Australia for the following periods after first leaving: ● In early 20XX you plan on spending a short period of time in Australia for personal reasons; ● You have also been given the opportunity to return home for one to two weeks in the 20XX calendar year at your discretion. You will be informing the Australian Electoral Commission and Medicare that you will be departing Australia. You have advised your private health insurance provider to have your policy suspended. Accommodation Your employer in Country X is providing you and your spouse (who will be living with you in Country X for the duration of your time in that country) with accommodation which is currently being sought. Your employer in Country X has also confirmed that the accommodation will be a type of residential property. The lease agreement will be for a minimum of 12 months. The accommodation will be shared between you and your spouse only. Currently you are not certain as to whether the lease agreement will be under your name or your employer’s name, however you expect this to be confirmed upon your arrival in Country X. You own a residential property (a townhouse) in Australia. You plan on leaving your Australian property vacant, however if you stay overseas is extended beyond five years you will sell your property. You intend on staying at your Australian property upon your brief return to Australia in early 20XX, along with another potential return to Australia for a brief period during 20XX. You will also use your Australian property for storage purposes, as you have not had time to sell items such as furniture before your departure. Assets You currently have Australian shares and bank accounts. You do not intend on making any investments in Australia whilst you are overseas. Your household effects in Australia will be stored in your Australian property unless you decide to remain overseas for longer than two and a half years, in which case you will sell them along with the property. You have some personal effects which will remain in your Australian property unless you remain overseas for more than two and a half years, in which case you will sell them. You will receive Australian dividend income twice yearly from your Australian shares. You will be advising the Australian companies in which you hold shares, along with the Australian financial institutions with whom you hold bank accounts that you will be a non-resident, in order for non-resident withholding tax to be deducted. You will open a bank account in Country X. You may need to lodge an income tax return in Country X. Family and social connections You have a spouse. You do not have any other dependants. Your spouse, who is a non-resident of Australia for taxation purposes, will be accompanying you in Country X. You will not be maintaining any professional, social or sporting connections with Australia. You have applied for an international drivers licence. Employment Your employer in Country X is an incorporated company, who consult to another entity in Country X. Your employer has signed a contract with the entity until 20XX. You will be working for your employer in Country X in a leadership position along with working as a consultant within the entity. Your employer in Country X want to sign you on as an employee for four years, however you have initially committed to working for them for 2.5 years, with the option of extending to four years. There is potential for the job to be extended beyond the four years, depending on various factors. Neither you nor your spouse, have ever been employed by the Commonwealth of Australia. Neither you nor your spouse are members of the Public Sector Superannuation scheme (PSS), nor are either of you an eligible employee in respect of the Commonwealth Superannuation Scheme (CSS).

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1)