Private ruling: Residency for tax purposes
Date of advice: 26 June 2020
Published: August 2020
Ruling period: Income year ended 30 June 20XX | Income 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 for the period of the ruling. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

Relevant facts and circumstances: You were born in a foreign country and are a citizen of that country. For the income years ended 30 June 20XX to 20XX, you visited Australia for short periods for holiday and visiting family. You enter Australia on a visa. When you come to Australia, you declare yourself to Customs as a short-term visitor. You are considering moving to Australia permanently in the future. However, this is still preliminary and subject to business and/or family needs. In a foreign country, your current residential address is a property owned by your company; which you share with a relative for caretaking purposes. During the period of the ruling, you have been actively involved in the daily management of a successful company in a foreign country. The business has total assets of $X. You also derive interest income from lending money to other business partners. You also receive regular wages per month. You receive no employment income in Australia and have no superannuation. You have no business activities in Australia. You have immediate family members who live in Australia who are Australian residents. Your extended family lives in a foreign country. Most of your friends, social contacts, and business associates are in a foreign country. You own a property in Australia. You use it as your residence when you visit Australia. It has a mortgage of approximately $X. You have similar amount of funds in an offset account. The market value of the property is about $X. You have one bank account in Australia which receives the funds sourced overseas. These funds are only used to make mortgage repayments. Almost all the living expenses during your stay in Australia are paid using your foreign credit card and are processes through your foreign country bank accounts. You have an Australian Medicare card, photo card and senior's card. You are one of the joint trustees of a family trust from which you have been excluded from benefitting at present. The trust only provides benefits for your immediate family members in Australia. You have beneficial and nominal ownership of numerous assets in a foreign country. Your net wealth is estimated to be around $X, the majority of which is based in a foreign country. You are not a member of the Public Service Superannuation Scheme or the Commonwealth Superannuation Scheme.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Subsection 995-1(1)