Private ruling: Residency
Date of advice: 7 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2018

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. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

Relevant facts and circumstances: You are married and have X adult children. You are an Australian citizen. You are not: a) a member of the superannuation scheme established by deed under the Superannuation Act 1990 ; or b) an eligible employee for the purposes of the Superannuation Act 1976 ; or c) the spouse, or a child under 16, of a person covered by sub-subparagraph (a) or (b). Your contract with your employer has been extended until the 202X income year. It is likely that your contract will be renewed in 202X as in previous years. As part of your local employment contract extension, your employer had also sponsored a renewal of your Employment Pass with the Country Y, which was due to expire. You were granted the Employment Pass on X XXXX 2018, allowing you to continue working in Country Y for a further X year period. On XX XXXX 2019, you took on additional responsibility within The company. You are a resident of Country Y for tax purposes and pay tax there. You will continue to spend the majority of your time in Country Y. You will be in Australia approximately each month for 2-3 days each month for work purposes. You intend on only being in Australia for non-work purposes for one week twice a year. Your spouse does not accompany you to Australia when you return for employment purposes. Your spouse travels to and spends approximately four weeks per year in Australia. You intend to remain in Country Y at the end of your contract period and not return to Australia. Social Ties You are not a member of any social groups or a member of any professional groups in Australia. You have social connections in Country Y. Economic Ties You own two houses in Australia. You have bank accounts in Australia with limited balances. You own a car in Australia which is used by your child. You have Australian private health insurance. Since moving to Country Y you have lived in the same apartment block which is paid by your employer. The apartment was unfurnished requiring you and your spouse to furnish it yourselves. You transported furniture, crockery, cutlery, glassware, bed sheets and towels with you as well as the majority of your personal effects. You and your spouse are responsible for the cost of utilities for the apartment. You have a bank account in Country Y which is used as your primary banking facility.

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