Private ruling: Residency for tax purposes
Published: September 2012
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2012

Ruling: Question and answer | Are you a resident of Australia for tax purposes from the time you depart Australia? | No.

Relevant facts and circumstances: You are a resident of Australia for tax purposes. You are moving to Country X with your spouse to live and work for one year. You intend to seek employment opportunities in Country Y at the completion of your one year work contract in Country X. You are taking 12 months leave without pay from your current employment in Australia. At the end of this period, your current employment will be terminated. You intend to take most of your possessions with you to Country X. You currently live in rental accommodation in Australia. You and your spouse will establish a home in Country X. Neither you, nor your spouse, are current Commonwealth government employees and neither of you are eligible to contribute to a superannuation fund established under the Superannuation Act 1990 or the Superannuation Act 1976 .

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

Reasons for decision: Summary: Generally 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. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.