Private ruling: Residency
Date of advice: 23 March 2018
Published: June 2018
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: No.

Relevant facts and circumstances: You were born in Country A. You are a citizen of Country A. You left Country A to move to Country B in 20XX to study. You rented an apartment in Country B for the period 20XX – 20XX. You left Country B in spring 20XX to move to Country C to take up a full time position with a Country B company, which then ceased in summer 20XX. You chose to remain in Country C and in 20XX you enrolled as a student. You met your partner in 20XX in Country C. You started working for a Country D Company in spring 20XX. You purchased vacant land in Country A in summer 20XX. You then took up a position for a Country B company. You and your partner, married in Country C in summer 20XX. You returned to Country B in winter 20XX to oversee construction of your investment property. You continued to work for your Country C employer, during your time in Country A. You and your partner permanently left Country A for Country C in summer 20XX. You continued to maintain your usual place of abode outside of Country A in Country C. You have no intention of returning to Country A to reside in the future. You or your partner are not eligible to contribute to the relevant Commonwealth super funds.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1). | Income Tax Assessment Act 1997 Section 6-5. | Income Tax Assessment Act 1997 Subsection 995-1(1).

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of ‘resident’ within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: 1. the resides test 2. the domicile test 3. the 183 day test 4. the superannuation test You do not meet any of the above tests and are not a resident of Australia for tax purposes.