Private ruling: Residency for tax purposes
Published: August 2012
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2012

Ruling: Question and answer | Are you a resident of Australia for taxation purposes while you are living in the Country X? | No.

Relevant facts and circumstances: You are currently a resident of Australia for tax purposes. You and your spouse are moving to Country X to live. You have an employment contract in Country X. You expect to remain living in Country X for the next 3 to 5 years. You will rent out your house in Australia. You will retain your Australian investments. You and your spouse intend to visit Australia for short periods to visit family and friends, and inspect your investment properties. You will also make short trips to Australia for work purposes and will stay in a hotel for the duration of each stay. Neither you, nor your spouse, have ever been Commonwealth government employees.

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: · the resides test · the domicile test · the 183 day test · the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes. The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.