Private ruling: Residency of Australia for taxation purposes
Date of advice: 9 May 2019
Published: June 2019
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 August 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You are not a permanent resident of any other country. You have been working overseas on vessels for a number of years. You have worked for a number of employers since leaving Australia. You are provided accommodation on the vessels. You are required to spend your down time on the vessels. In mid 20XX you moved in with your spouse to their house in Country Y. When you are not working on the vessel you live with your spouse in the property in Country Y. The property in country Y is your spouse's permanent residence. You and your spouse intend to build a home in Country Y once all approvals are obtained. You currently enter Country Y on a visitor's visa and have lodged an application for a spouse's visa. You took all your personal items to country Y with you. When you are not on the vessel you are in Country Y with your spouse. You have a rental property and bank account in Australia. Your parent and siblings live in Australia. You return to Australia to visit your parent and siblings and you do not exceed 183days in Australia. You do not intend on spending more than 183 days in any financial year in Australia in the future. You and your spouse are not eligible to contribute to the PSS or the CSS super funds.

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

Reasons for decision: Summary: Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that 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. 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.