Private ruling: Residency
Date of advice: 31 May 2017
Published: September 2017
Ruling period: Year ending 30 June 201D | Year ending 30 June 201E | Year ending 30 June 201F
Date scheme commenced: 1 July 201C

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

Relevant facts and circumstances: You are an Australian citizen. You have a spouse. You moved to Country A for work, in 201A. Your spouse left their job in Australia to join you permanently in Country A in 201B. You resigned from your job at Company X in 201D where you worked as a contractor for Company Y in accordance with an agreement between the two entities. You are directly employed by Company Y in Country A since you resigned from Company X in 201D. You live in a leased apartment in Country A that is available to you for the entirety of each year. The apartment in Country A is paid for by Company Y, but is fully furnished by you and your spouse. You have bought items for your home in Country A including but not limited to; bikes, computer equipment, art, lounge suites, television, tables and chairs. You retain a property in Australia. This property is rented to tenants through an agent. You return to Australia two to three times a year to visit family and friends. The duration of these visits is generally less than 10 days. Your spouse was an Australian Commonwealth Government employee and a contributing member of the PSS Scheme until being made redundant. You have cancelled our Australian private health insurance. You do not intend to return to Australia. You intend to live in Country A for an extended period of time, with no time for departure considered. You have memberships to various sporting clubs and activity groups in Country A as well as a network of local friends that you regularly socialise with.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 995-1 | 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.