Private ruling: Residency
Date of advice: 15 November 2018
Published: March 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au

Relevant facts and circumstances: You are a citizen of Country X. You and your spouse permanently reside in Country Y. Since 20XX, both you and your spouse have been permanent residents of Country Y, by way of a permanent residency visa. This was obtained through a specific arrangement in that Country. Your permanent residency visa is required to be renewed every three years, with your current visa having been issued in 20XX, and will be renewed in 20XX. However, in 20XX both you and your spouse intend on applying for a longer residency visa that can be renewed after five years. This visa has been newly introduced in Country Y for the purpose of retaining individuals over at certain age. In order to qualify for the longer residency visa, a person that meets the age requirements must meet certain other conditions. You and your spouse would qualify for the longer residency visa, as you will meet the relevant conditions. You do not hold permanent residency in any other country. In the previous few years, you have lived in the following places, due to working commitments: ● Country Z from late 20XX to early 20XX ● Country X from early 20XX to early 20XX ● Country Y from early 20XX to present For the working commitments you had in Country Z and Country X, you returned to Country Y for holidays and family gatherings. You and your spouse intend on arriving in Australia from the middle of 20XX for holidays, as you expect to be retired from work from this date onwards. During your retirement, you and your spouse will maintain your permanent resident status in Country Y, and you will both continue living your residence in Country Y. You have no intention on residing in Australia on a permanent basis, and you and your spouse intend on visiting Australia twice a year for recreational purposes, for short periods each time (less than six months a year in total). During these visits, you intend on staying in a property you own in Australia (the Australian property). After each visit, you and your spouse will return to your permanent home in Country Y. You have been granted a short term visa to enter Australia, granted in the middle of 20XX. You intend on applying for a similar visiting visa for future visits to Australia. Whilst you have previously have been a permanent resident of Australia, you do not intend on reapplying for this. For each visit to Australia, you will travel on a return airline ticket. You and your spouse also expect to travel to other countries to visit family during your retirement. Prior time spent in Australia You have previously entered Australia for work purposes in late 20XX, where you initially held a temporary resident visa (457), and following this you held a Permanent resident visa in 20XX. Your working arrangements in Australia ceased in 20XX, at which time you departed Australia to take up a new working role overseas. At this time you lived in your residence in Country Y. Your visits to Australia since 20XX have been infrequent and mainly for holidays. Since 20XX, when visiting Australia, you have obtained resident return visas along with the most recent short term visa granted in the middle of 20XX. You have a spouse, whom you met in Australia and started a de-facto relationship with during the previous period you spent working there. You and your spouse married overseas in 20XX. Your spouse is a citizen of Australia, and a permanent resident of Country Y, by way of a permanent residency visa, which is currently renewable every three years. You have one child who resides in another overseas country. You also have one child and two grandchildren who reside in Country X. Your children will not be accompanying you for your visits to Australia from the middle of 20XX. You have an exclusive network of family and friends in both Country Y and other overseas countries, and you will be maintaining these relationships during your planned visits to Australia. You have established close relationships with high authority individuals in Country Y. You will continue to host family gatherings and build social and economic ties in Country Y. There are dedicated rooms for your two children and their families in your Country Y residence. You have some friends in Australia, who will you be visiting occasionally. You do not have any family members living in Australia. You are not a member of any sporting clubs, or other clubs in Australia. In 20XX you purchased a house to be constructed in Country Y. The house was built and completed in 20XX, where you took possession. The Country Y residence is quite substantial, with several rooms that are fully furnished. The Country Y residence has recently been renovated and it is regarded as your home. The Country Y residence will not be rented out during your planned visits to Australia from the middle of 20XX, and it is maintained by domestic staff you employ on a permanent basis. The Country Y residence will be available for you and your spouse to return to at all times, and you and your spouse will be returning there after each visit to Australia. You also own a property in Australia, which was purchased in 20XX, and it has been rented out since you departed Australia in 20XX. The Australian property will have the usual features of a self-contained holiday destination. You and your spouse intend on staying in the Australian property during your planned holidays in Australia from the middle of 20XX (during your retirement), and using it as a base for travelling around Australia and other surrounding regions during these holidays. You intend on maintaining the Australian property as a holiday apartment, and you will not be renting this to others. You have an Australian bank account, which you will use for paying personal expenses whilst holidaying in Australia. You hold a superannuation account with an Australian superannuation provider, which was established during the period you were previously working in Australia. You do not, and will not own any motor vehicles in Australia. Whilst you will be bringing some personal effects required for each holiday in Australia, you will be taking these items with you upon your return to Country Y. You hold a bank account in Country Y. You own motor vehicles in Country Y. You own a boat in Country Y. Your personal belongings, records and files are held in your residence in Country Y. You are currently employed in another overseas country, where you derive income in the form of salary and wages. You currently live in your residence in Country Y and you commute to the other overseas country for your employment. From the middle of 20XX you will be retired and will be relying on savings and other investments to live on. You will not be employed at any time in Australia from the middle of 20XX. You will not be pursuing any business opportunities at any time in Australia from the middle of 20XX. You and your spouse have never been a Commonwealth of Australia Government employee for superannuation purposes. You are not planning on enrolling in any course of study for more than six months whilst holidaying in Australia.

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