Private ruling: Residency – departing Australia
Date of advice: 26 March 2018
Published: July 2018
Ruling period: Year ending 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No You and your spouse moved your family to Country Y on DDMMYY It was your family's intention to live together in Country Y on a permanent basis. On departing Australia, both you and your spouse indicated on the Australian immigration outgoing passenger card that you were an 'Australian resident departing permanently' and that your 'Country of future residence' was Country Y. Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms ‘resident’ and ‘resident of Australia’, in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are: ● the resides test, ● the domicile test, ● the 183 day test, and ● the superannuation test. If any one of these tests is met, an individual will be a resident of Australia for taxation purposes. 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 ITAA 1997 and subsection 6(1) of the ITAA 1936.

Relevant facts and circumstances: You departed Australia on DDMMYY and currently have no plans to return on a permanent basis. Your intention is to live in Country Y permanently or in a country other than Australia. You have employment passes which allows you to reside and work in Country Y and are renewable every two (2) years. You have leased a residence in Country Y. Your Australian residence has been rented out and is no longer available for you to live in. You are carrying out your day to day family life in Country Y. You are not eligible to contribute to a Commonwealth super fund. The Australian Electoral Office has removed you from the electoral roll.

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