Private ruling: Residency for tax purposes
Published: June 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

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

Relevant facts and circumstances: You are a citizen of Australia. You were born in Australia. You work overseas. You have a work visa for the country you work in. You are considered a resident of the overseas country and you pay tax in that country. Your spouse accompanied you overseas. You rent a property overseas. You have relocated all your belongings overseas. You intend to live overseas on a permanent basis. In 2011 you were told by your employer that your position was no longer required and that it would end. You and your spouse returned to Australia for a short period. You were offered another position overseas which you took. This position is a contract position and the contract can be extended. Your spouse is currently in Australia recuperating from medical treatment and will join you as soon as this treatment is complete. You have a bank account in the overseas country along with a share in a boat. You have a bank account, shares and a property in Australia. You have made a number of trips back to Australia for family and work purposes. Neither you nor your spouse are currently or have ever been Commonwealth government employees.

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).

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of 'resident' within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: · the resides test · the domicile test · the 183 day test · the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes. The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au.

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.