Private ruling: Residency
Published: May 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Are you a resident of Australia for taxation purposes? | No


Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection6(1). | Income Tax Assessment Act 1997 Section 6-5. | Income Tax assessment Act 1997. Subsection 995-1(1)

Reasons for decision: Summary: Subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident as a person who is a resident of Australia for the purpose 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. These tests are: 1. The resides test 2. The domicile test 3. The 183 day test 4. The superannuation test The first two tests are examined in detail in Taxation Ruling IT 2650. | Detailed Reasoning - The resides test: The ordinary meaning of the word 'reside', according to the Macquarie Dictionary , 2001, rev. 3 rd edition, The Macquarie Library Pty Ltd, NSW, is 'to dwell permanently or for a considerable time; having one's abode for a time', and according to the Compact Edition of the Oxford English Dictionary (1987), is 'to dwell permanently, or for a considerable time, to have one's settled or usual abode, to live in or at a particular place'. As you visited Australia for a short time on a sub class 457 visa (temporary work visa) and only spent Y months in one location in shared accommodation you do not meet the resides test. | Detailed Reasoning - The domicile test: If a person has their domicile in Australia they will be an Australian resident unless the Commissioner is satisfied they have a permanent place of abode outside of Australia. You are a citizen of Country A working in Australia on a y month internship. You did not intend to live permanently in Australia. You do not have an Australian domicile. | Detailed Reasoning - 183 day test: When a person is present in Australia for 183 days during the year of income the person will be a resident, unless the Commissioner is satisfied that the person's usual place of abode is outside Australia and the person does not intend to take up residence in Australia. This test does not apply to you as you will not be present in Australia for more than 183 days in the year. | Detailed Reasoning - The superannuation test: An individual is still considered to be a resident if that person is eligible to contribute to the Public Service Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS), or that person is the spouse or child under 16 of such a person. You are not a Commonwealth Government employee. You are not a resident under this test. | Detailed Reasoning - Your residency status: As you do not meet any of the residency tests you are not a resident of Australia.

Relevant facts: You were born in Country A | You entered Australia on a working Holiday Visa. | Prior to commencing your work you travelled around Australia. | You commenced work as an intern for Y months. | You live in shared accommodation. | You will be returning to Country A within X months of your arrival. | You are not sure whether you will be returning to Australia as this is dependent on your financial circumstances.