Private ruling: Residency
Date of advice: 24 May 2024
Published: 8 July 2024
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Are you a resident of Australia for the purposes of subsection 6(1) of the Income Tax Assessment Act 1936 from XX 20XX? | A1: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. On XX 20XX, you and your partner relocated to Country X. You have decided to immigrate to Country X. You also intend to apply for citizenship of Country X. Prior to departing Australia, you purchased and lived in an apartment with the partner. The apartment has been leased out. In Australia, you have Australian driver's license but it has expired, bank accounts to collect rental fee and pay off the mortgage, CommSec account with minimal shares. You sold all your personal belongings included their car. You updated their bank account contact detail to their foreign address. You informed the Australian Electoral Commission and Medicare that you left Australia. You have been sponsored by their Country X employer to enter the country by Employment Pass visa. In Country X, you rent and live in a property with your partner.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1)

Reasons for decision: Summary: For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests. • The resides test (otherwise known as the ordinary concepts test) • The domicile test • The 183 day test • The Commonwealth superannuation fund test. We have considered your circumstances, and conclude that you are not a resident of Australia from 23 February 2023, as follows: • You are not a resident of Australia according to the resides test. • You do not meet the domicile test because your domicile is in Australia, and the Commissioner is satisfied that your permanent place of abode is outside Australia. • You do not meet the 183 day test because you were in Australia for 183 days or more during the 2023 income year, and the Commissioner is satisfied that both: o your usual place of abode is outside Australia, and o you do not intend to take up residence in Australia. • You do not fulfil the requirements of the Commonwealth Superannuation test.