Private ruling: your residency status for tax purposes
Published: August 2017
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 2015

Ruling: Questions and answers: | Are you a resident of Australia for income tax purposes? | No.

Relevant facts and circumstances: You are married and have no dependent children. You are an Australian citizen. You are not: a) A member of the superannuation scheme established by deed under the Superannuation Act 1990 ; or b) An eligible employee for the purposes of the Superannuation Act 1976 ; or c) The spouse, or a child under 16, of a person covered by sub-subparagraph (a) or (b). Employment You were living and working in Australia. You then left Australia to commence work in Country X. Your spouse joined you when you left Australia. Your work requires you to travel to Australia and other countries for work purposes. You are a resident of Country X and pay tax in Country X. Travel to Australia You have spent less than 183 days in Australia in the 2015-16 financial year. You plan to spend no longer than 3 weeks in Australia per year for personal purposes. Your spouse does not accompany you to Australia when you return for employment purposes. Your spouse travels to and spends approximately 4 weeks per year in Australia. You intend to remain in Country X at the end of your contract period and not return to Australia. Social Ties You are not a member of any social groups or a member of any professional groups in Australia. You were a long term member of a club in Australia but changed your status to 'Absentee member' when you moved to Country X. You have developed social and professional ties in Country X joining the several clubs. Economic Ties You own a property in Australia which was your main residence. You also own a holiday house in Australia which is left vacant. You have bank accounts in Australia. You own a car in Australia. You have Australian private health insurance. You are the co-director an Australian company. You have no involvement in the running of the company. Since moving to Country X you have lived in the same apartment block which is paid for by your employer. The apartment was unfurnished requiring you and your spouse to furnish it yourselves. You transported furniture, crockery, cutlery, glassware, bed sheets and towels with you as well as the majority of your personal effects. You and your spouse are responsible for the cost of utilities for the apartment. You have a bank account in Country X which is used as your primary banking facility.

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 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.