Private ruling: Residency
Date of advice: 1 June 2020
Published: July 2020
Ruling period: Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020
Date scheme commenced: 1 July 2017

Ruling: Q1: Is Commissioner satisfied that taxpayer ceased to reside in Australia under the ordinary concepts test upon his departure from Australia? | A1: Yes | Q2: Is Commissioner satisfied that the taxpayer has established a permanent place of abode outside Australia since his departure from Australia? | A2: Yes Having considered your circumstances as a whole and the relevant residency tests, you are not a resident of Australia for income tax purposes from the date you departed Australia and established a permanent place of abode outside Australia.

Relevant facts and circumstances: You are a citizen of Australia and country Z. You departed Australia in 2017 to live and work in country Z. At the time you left Australia, you intended to make your home indefinitely in country Z and had no intention to return to Australia. You do not own property in Australia. You removed yourself from the electoral roll You have no partner or children. You have no Private Health Insurance in Australia. You intend to cancel your Medicare. You are employed by A Ltd on a commercial yacht as a seafarer in country Z. As part of your employment as a seafarer on the yacht you travel to various international countries for varying duration. You spend the majority of the time working on the yacht in international waters since you moved to country Z. You live in country Z when you are not working on the yacht. Your salary is paid into country Z bank account in the local currency. You entered into a lease agreement for six months but you have continued to stay at this address since moving to country Z. Your intention is to enter into a long term lease in country Z where you will stay when you are not working on the yacht. You intend to continue to live and work in country Z. You are a country Z tax resident for country Z tax purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 ( ITAA 1997 ) Section 6-5