Private ruling: Residency for taxation purposes
Date of advice: 17 September 2015
Published: September 2015
Ruling period: 1 July 2015 to 30 June 2016.
Date scheme commenced: 1 July 20XX.

Ruling: Question and answer: | Are you a resident of Australia for the period you are overseas? | No.

Relevant facts and circumstances: You resigned from your employment in Australia and moved to another country for an indefinite, but uncertain, period of time. You will remain in the other country for the whole of the time you are outside Australia. Your partner has accompanied you to the other country. You do not intend to return to Australia for any reason before 30 June 2016 (the end of the financial year to which this ruling relates). Prior to leaving Australia you were an Australian resident for taxation purposes and you were living in your own home. You have sold you home in Australia. You have no household effects or personal belongings left in Australia. What wasn't taken with you to the other country was disposed of before you left Australia. You are living in a flat in the other country. You do not have a job in the other country. Your assets in Australia are a bank account, investments, and superannuation. You have no family in Australia. While you are in the other country you will maintain contact with former Australian colleagues and friends by email, and social networks. You have a large extended family and some friends in the other country. You have suspended your Australian private health insurance until further notice. Neither you nor your partner, have ever been employed by the Commonwealth of Australia.

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

Reasons for decision: Summary: 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 during the period you will be in the other country and you will be a non-resident of Australia for taxation purposes during that time.