Private ruling: Income tax - assessable income - residency - ordinary concept of residence
Date of advice: 29 June 2020
Published: August 2020
Ruling period: Year ending 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: X/XX/2016

Ruling: Q1: Are you a resident of Australia for income tax purposes from 2016 to 2019 when you relocated to Country A for employment? | A1: No. Having considered your circumstances and the relevant factors, you are not a resident of Australia for income tax purposes under section 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) between 2016 and 2019 as you have not met any of the tests required to be considered a resident of Australia during this period.

Relevant facts and circumstances: You were born in Australia. You are an Australian citizen. In 2016, you travelled to Country A following the completion of your university studies. You secured employment in Country A. You were employed with this company from 2016 to 2019. You were granted visas which allowed you to work in Country A. You returned to Australia for vacations spanning one to two weeks during this period. You lodged income tax returns with the local tax authority for the period you were employed in Country A. You relocated back to Australia in 2019. Upon returning to Australia, you secured employment. Prior to departing you: ¢ Informed the Electoral Commission that you were moving overseas, ¢ You parents removed you from their private health insurance, ¢ You resided with your parents, ¢ You sold your furniture, and gave many of your personal belongings to friends, family and charity. You did not have a partner, spouse or dependant during your time overseas. You secured a bank account upon your arrival in Country A. You subleased three apartments in Suburb A and Suburb B whilst employed in Country A. Your accommodation was not supplied by your employer. You are not a member of the PSS or CSS schemes.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Subsection 6-5(2) | Income Tax Assessment Act 1997 Subsection 6-5(3) | Income Tax Assessment Act 1997 Subsection 6-10 | Income Tax Assessment Act 1997 Subsection 995-1(1)