Private ruling: Residency
Date of advice: 26 February 2016
Published: April 2016
Ruling period: 1 July 2015 to 30 June 2018.
Date scheme commenced: 1 July 2015.

Ruling: Question and answer: | Are you a resident of Australia for taxation purposes for the period 1 July 2015 to 30 June 2018 | No.

Relevant facts and circumstances: You are a dual citizen of Country A and Australia. Your country of origin is Country A, you were naturalised an Australian citizen. You have lived and worked in Country B for the past X years and you intend to remain in Country B for another Y to Z years. You have a current employment contract with a foreign company based in Country B. The contract is for a three year period and can be extended by agreement. You live in fully furnished accommodation in Country B provided by your employer. You are divorced and have adult children in Australia. You have a bank account in Australia. You have no other assets in Australia. You will return to Australia two or three times a year for short periods to visit your children. You are not an eligible member of the Commonwealth Superannuation Scheme, nor the Public Service Superannuation Scheme.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 995-1(1). | Income Tax Assessment Act 1936 Section 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 during the period 1 July 2015 to 30 June 2018 and will be a non-resident of Australia for taxation purposes during that time.