Private ruling: Residency for taxation purposes
Date of advice: 6 August 2018
Published: September 2018
Ruling period: Year ended 30 June 2019
Date scheme commenced: 01 July 2018

Ruling: Q1: Will you be considered a non-resident of Australia after you have moved to Country A | A1: Yes 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.

Relevant facts and circumstances: You were born in Country A You moved to Australia You have accepted a job in Country A and intend to move there on or around mid 20XX You have no intention to return to Australia You partner will join you there in the future You will maintain a bank account in Australia You have superannuation in Australia You do not have any other assets in Australia Your parents and siblings will remain in Australia

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