Private ruling: Temporary residency and foreign source income
Date of advice: 10 September 2019
Published: November 2019
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2008

Ruling: Q1: Are you a temporary Australian resident for taxation purposes? | A1: Yes Having considered all of the facts, circumstances and relevant legislation, the Commissioner considers you meet the definition of a temporary resident under section 995-1 of the ITAA 1997. More information about temporary residency can be found by searching for QC 18869 on ato.gov.au | Q2: Is the rental income and the capital gain on the sale of your overseas real property taxable in Australia? | A2: No As you are a temporary resident of Australia the income from your overseas investment property is not assessable income and you do not pay capital gains tax (CGT) in Australia on the sale of your overseas property. More information can be found by searching QC 33208 and QC 18869 on ato.gov.au

Relevant facts and circumstances: You and your spouse are citizens of country A. You and your spouse moved to Australia permanently on Special Category Visas (SCV). You are an Australia resident for tax purposes. You purchased an investment property in Country A. You sold the investment property in Country A. You and your spouse have never applied for Australian citizenship.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 subsection 6-5(2) | Income Tax Assessment Act 1997 subsection 6-10(4) | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 section 995-1