Private ruling: Residency
Published: April 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you an Australian resident for taxation purposes? | A1: No

Relevant facts and circumstances: You are a citizen of Australia. You migrated from Country A to Australia. You were appointed as a Visiting Associate Professor at Country B. From January 20XX your work in Country B was funded by the university there as funding for your project was limited In mid-20YY funding for your work at the university in Australia decreased and you went on holiday and long service leave. Your employment ceased with the University you work for in Australia in October 20YY. In the 20YY financial year your annual contract at the University in Country B varied up to 100% of your time. From 1 July 20ZZ you were contracted as a full Associate Professor at the University in Country B with tenure of three years. The agreement offers the prospect of a full-time tenure track appointment after a second 3 year term to be decided no later than the 6 th year. This is in 20AA. You do not have a definite plan to return to Australia or to another country. You intend to pursue your career prospects in Country B until at least 20BB. Your only family in Australia is your spouse. Your spouse is unable to be you in Country B full time due to her professional commitments in Australia. You took your most valuable personal effects with you to Country B, such as Bicycle, music library, snorkelling equipment and camera equipment. You do not have any Australian utility bills directed to your attention. In Australia, you have joint ownership of a property with your spouse. Your spouse manages the property, and pays all bills including the mortgage repayments from his/her own income. In Country B you rented a furnished apartment on a 2 year lease. In July 20ZZ you rented an unfurnished 2 bedroom flat which you have furnished in your own style of furniture. You do not own a car in Australia. You maintain a bank account in Country B into which your salary from the Country B University is paid. You spend a large portion of your salary on daily living expenses in Country B, maintaining your residence and on holidays. You do not holiday in Australia. You have social connections in Australia. You have social and sporting connections in Country B. You and your spouse were not employed by the Commonwealth of Australia.

Relevant legislative provisions: Subsection 6(1) of the Income Tax Assessment Act 1936

Reasons for decision: Summary: Generally where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia from the financial year ending 30 June 20ZZ to 30 June 20CC.