Private ruling: Residency
Date of advice: 18 June 2024
Published: 29 July 2024
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY | Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you an Australian resident for tax purposes after the date you moved to Country B to live? | A1: No. You do not meet any of the four tests for Australian tax residency, therefore you are not a resident of Australia for taxation purposes from DD MM 20YY.

Relevant facts and circumstances: You are an Australian citizen. You departed Australia to commence working in Country B on DD MM 20YY. You have an indefinite, permanent work contract in Country B. Your work visa allowed you to stay in Country B for 1 year, issued in 20YY. Your visa was renewed for X more years in 1-year intervals. You have renewed your visa for a X-year interval expiring in 20YY. You intend to remain in Country B indefinitely and renew your work visas as they expire. You intend on returning to Australia once your work contract or visas expire, or you are finished performing your work duties overseas. You do not intend to apply for permanent residency or citizenship in Country B. You rent accommodation in Country B at X address; the lease period is X years. All of your personal belongings and furniture remain with X whom you were living with prior to departing Australia. You have an Australian bank account. You have a Country B bank account. You do not own a home in Australia. You do not have a spouse or any dependent children. You closed your superannuation account in Australia as it had a nil balance. You returned to Australia for more than X weeks, once since your departure between mid-MM 20YY to MM 202YY. You have stated you have not been in Australia for more than 183 days since you commenced working in Country B. You do not intend on removing your name from the Australian Electoral roll. When you left Australia, you did not mark your outgoing passenger card as leaving Australia permanently.

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

Reasons for decision: Summary: For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests. • The resides test (otherwise known as the ordinary concepts test) • The domicile test • The 183 day test • The Commonwealth superannuation fund test We have considered your circumstances, and conclude that you are not a resident of Australia for the 20YYto 20YY income years, as follows: • You are not a resident of Australia according to the resides test. • You do not meet the domicile test because your domicile is in Australia, and the Commissioner is satisfied that your permanent place of abode is outside Australia. • You do not meet the 183 day test because you were in Australia for 183 days or more during the 20YY income year and no other income year, and the Commissioner is satisfied that both: o your usual place of abode is outside Australia, and o you do not intend to take up residence in Australia. • You do not fulfil the requirements of the Commonwealth Superannuation test. | Detailed Reasoning - More information: For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .