Private ruling: Residency
Date of advice: 20 June 2017
Published: October 2017
Ruling period: Year ended 30 June 2016
Date scheme commenced: 12 August 2015

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

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You went to Country Y in the 2016 income year to work. You are working as a professional in Country Y. You will remain working in Country Y on an indefinite contract for X years. You have a work visa to work in Country Y and you can remain in Country Y as long as you are working. You live in employer provided accommodation in Country Y which is for your sole use. Your home in Australia is being rented out while you are working overseas. You return to Australia twice a year to visit family and friends and these trips do not exceed 183 days. You are single. You only have income from your rental property in Australia. You have a house and a bank account in Australia. You have a car and a bank account in Country Y. You have had your name removed from the Electoral Commission records. You have suspended your private health insurance in Australia. You are not eligible to contribute to the PSS or the CSS 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 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.