Private ruling: in relation to your residency for tax purposes
Published: August 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Are you a resident of Australia for taxation purposes from X Date? | A1: Yes.

Relevant facts and circumstances: You and your spouse are Country X citizens. You and your spouse are in Australia on a visa. You intend to apply for permanent residency as soon as possible. You have visited Australia on several separate occasions. You arrived in Australia on X Date with the intention of settling in Australia on a more permanent basis. You will be in Australia for the majority of the year from X Date. You have an Australian Bank account which you use whilst in Australia, including paying your mortgage and living expenses. You have sold your main residence in Country X and have entered into a long term lease after having your visa approved. You have purchased a car in Australia. You have purchased a house in Australia that you have been living in since X Date. You are exploring the opportunity to develop business ties in Australia. You are joining the local social club.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Subsection 995-1(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. Where a taxpayer has immediate family in Australia and has maintained assets in Australia, under these circumstances they would be considered a resident of Australia for taxation purposes because they either meet the domicile and or the resides test(s) under subsection 6(1) of the ITAA 1936. In your circumstances you have shown the intention to make Australia your domicile of choice from X Date. You have come to Australia with your spouse and you have purchased a home in Australia in which you are both living. You are in the process of developing social connections and business connections within Australia. All of these facts display your intention to reside within Australia. Considering this and the facts provided you will meet the resides test. Accordingly you are 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.