Private ruling: Residency and main residence exemption
Date of advice: 28 July 2020
Published: August 2020
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes. Based on the facts you have provided, we can conclude that you will satisfy the tests for residency. | Q2: Can you use the 6 years absence rule to treat your property in Australia as your main residence for up to 6 years while it is being rented out? | A2: Yes. You have made an election to treat your property as your main residence for up to 6 years while you are travelling.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You commenced travelling around the world in the 20XX income year. You use Country Y as your base. The visa you have for Country Y does not allow you to remain permanently in Country Y. You rent fully furnished accommodation in country Y on a 12 months lease which you can terminate at any time. You have travelled to various parts of the world. You came back to Australia for a short period in 20XX. You intended on returning to Australia in early 20XX, but a medical condition meant you could not. You were also intending on returning to Australia in mid 20XX, but the pandemic has prevented this. You now intend on returning to Australia in late 20XX. You do not intend on being overseas permanently. It is your intention to return to Australia to live in the future. You consider Australia your home. You do not have a spouse or any dependants. You own a rental property in Australia along with renting out your main residence, this is how you fund your travel. You are not eligible to contribute to the PSS or the CSS Commonwealth super funds. You elect to treat your main residence in Australia as your main residence for up to 6 years while you are travelling. You will not have any other main residence while treating your Australian property as your main residence.

Relevant legislative provisions: Income tax Assessment Act 1997 section 118-145 | Income tax Assessment Act 1997 section 995-1