Private ruling: Residency
Date of advice: 18 September 2018
Published: September 2018
Ruling period: Financial year ending 30 June 20XX | Financial year ending 30 June 20XX
Date scheme commenced: XX February 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No Having considered your circumstances and the relevant factors, you are not a resident of Australia for income tax purposes under section 995-1(1) of the Income Tax Assessment Act 1997 and subsection 6(1) of the Income Tax Assessment Act 1936 as you have not met any of the tests required to be considered a resident of Australia.

Relevant facts and circumstances: You departed Australia on XX February 20XX as part of the Department of Foreign Affairs and Trade (DFAT) employment. Your intention was to stay long term in Country A and you did not intend to move to another country however this changed when the program you were deployed to ceased to exist. The following facts support your intention. You held a resident visa in Country A facilitated through a Relevant High Commission and your salary was paid by your employer until your deployment ended in June 20XX. They also paid Superannuation into your xxxxx fund. Before departing you removed your name from the electoral role and ended the lease on the property you had been renting and placed your belongings into storage. You had a serviced apartment in xxxxxx, Country A from late February until August then moved into another apartment from September to late June 20XX. Both were for your sole use and the leases were in yours and your employers’ name. You furnished the apartment and enjoyed sporting and social activities, an established job, friendship groups and were undertaking language lessons. You did not notify Medicare of your departure and lodged a 20XX Australian income tax return where you declared yourself to be a resident of Australia for the full financial year. You suspended your Private Health Insurance policy, which has since lapsed, and were charged both the Medicare levy and Medicare levy surcharge in the 20XX financial year. You have not notified any Australian financial institutions that you are a foreign resident so that non-resident withholding tax can be deducted; however you intend to do that retrospectively if you are considered a non- resident of Australia for tax purposes. From July 20XX until January 20XX you were paid an honorarium as a volunteer to conduct research for the xxxxx-xxxxxxx Foundation in Country A. During this time you travelled to Country B and Country C for a conference associated with research with the xxxxx-xxxxxxx Foundation. You also travelled to Country D for training with Country D Agency. In February 20XX you moved to Country E on a specific visa and were employed by a World Food Program until August 20XX. You resided in accommodation under a direct lease in your name which was for your sole use and paid for by you. You then applied for and were accepted for a resident visa in Country D for the next 2 years to undertake a Master’s Program at xxxxxxx University as a X. The visa was facilitated through the Relevant program. You moved to Country D on XX August 20XX and reside at an apartment which is leased in your name and is for your sole use. Your intention was to live in Country D to undertake those studies and continue into the PHD program commencing in August 20XX, however you are presently planning to move back to Country A to undertake research on peace and conflict there early next year and have started discussions to be based in the xxxxxxxxx University of xxxxxxx. You have retained your social and sporting connections in xxxxxx since you departed Country A. Although you have returned for brief visits during your overseas tenure, you have no immediate plans to return to Australia on a permanent basis. You have not lodged any foreign Income tax returns while living overseas. You do not have a spouse or any dependants. You are not an eligible member of the Commonwealth or Public Sector Superannuation schemes. You do not have an abode in Australia. You do not have a position or job being held for you in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 995-1 | Income Tax Assessment Act 1936 subsection 6(1) IT 2650