Private ruling: Residency for tax purposes
Published: July 2012
Ruling period: Year ended 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you a resident of Australia for tax purposes for the period you are living in Country X? | A1: No.

Relevant facts and circumstances: You are a citizen of Australia and Australia is your country of origin. You departed Australia for Country X in the year ended 30 June 2012. You went to Country X to work and live. You intend to remain in Country X until the year ending 30 June 2014. You have not been back to Australia since your departure. When you were in Australia, you lived with your parents. You live in an apartment which your employer sourced for you. You are accountable for all payments in relation to this apartment. You have a bank account in Country X. You have bank accounts in Australia. You are single. You have friends in Australia. You are a member of sporting and social clubs in Country X.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1936 Subsection 6(1)

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 for tax purposes.

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.