Private ruling: Residency
Date of advice: 21 August 2020
Published: October 2020
Ruling period: Year ended 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024 | Year ending 30 June 2025
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No. Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency. Accordingly, 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 . You are not assessable on your foreign sourced income from when you left Australia.

Relevant facts and circumstances: You are a citizen of Australia and Country Y. You and your spouse moved to Country Z in the 20XX income year to live and work. You have a XX month contract with your employer in Country Z. The contract can be extended for a further XX months and this is your intention. You will move to Country X to live once you have completed the time in Country Z. Your family home in Australia is being rented out at commercial rates to a related party. If you return to Australia on holiday you will stay with family and friends or in short term accommodation. You and your spouse have the following assets in Australia: · An investment property in Australia which is leased on a short-term basis (holiday home) · A portfolio of shares · Superannuation Fund(s) in Australia · An Australian investment account that produces interest and dividend income You have notified your superannuation fund and financial institutions in Australia, that you have ceased to be a resident of Australia for tax purposes. You have deregistered yourself from the Electoral role in Australia. You have sold your cars in Australia. You are renting accommodation in country Z. As a result of the Covid-19 pandemic your employer in Country Z required you and your spouse return to Australia temporarily. You intend on returning to Country Z as soon as the travel restrictions have been lifted. You and your spouse are not eligible to contribute to the PSS or the CSS Commonwealth super funds.

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