Private ruling: Residence for tax purposes
Date of advice: 8 August 2017
Published: November 2017
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2017

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

Relevant facts and circumstances: You were born in Australia. You have been living and working outside Australia for a number of years. You have been lodging your Australian tax returns as a non-resident of Australia for taxation purposes. You have established a home in Country Y. You have an employment pass to work in Country Y and this has been extended until XXXX. You make short trips back to Australia for work and family purposes. You have had your name removed from the electoral role. You cancelled your Australian health insurance. You do not contribute to any Australian superannuation fund. Your Australian mail is redirected to your address in Country Y. You are not eligible to contribute to the PSS or the CSS superannuation 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 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.