Private ruling: Residency
Date of advice: 14 February 2018
Published: June 2018
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 2016

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: Yes. Generally speaking, a taxpayer who leaves Australia with an intention of returning to Australia at the end of a transitory stay overseas would remain a resident of Australia for income tax purposes unless he or she can satisfy to the Commissioner that during the year of income his or her permanent place of abode was outside Australia. What constitutes a mere transitory stay overseas for these purposes would vary with the circumstances of each case. However, as a general proposition, an overseas stay for a duration of less than two years would be considered as being of a transitory nature. It is stressed that the duration of the taxpayer's stay overseas is not of itself conclusive and must be considered with all the other factors. As you are staying overseas for less than two years, the Commissioner is not satisfied you have a permanent place of abode overseas. You also intend to return to Australia. You are an Australian resident for income tax purposes.

Relevant facts and circumstances: You were born overseas. You moved permanently to Australia. You travelled overseas to organise care for your parents. You left Australia with the intention of a short visit, and have needed to extend your stay due to family circumstances. You intend to return to Australia and make Australia your home indefinitely. Your main assets are located in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1936 6(1)