Private ruling: Residency
Published: January 2014
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you an Australian residence for taxation purpose during the period you are employed in Country A? | A1: No

Relevant facts and circumstances: You are a citizen of Country B. You have been granted permanent residency of Australia. You were born in Country C. Prior to departing Australia, you are permanently living in Australia. You will resign from your current job when you leave Australia. You intend to depart Australia to look for work in Country A in March 20YY. Your destination is Country A. You will acquire a Country A identity card to secure your work in Country A. The identity card will entitle you to remain permanently in Country A. You intend to secure employment with ongoing work requirements that are indefinite. You intend to reside permanently in Country A in rented premises. You family will join you as soon as you obtain permanent employment. You decided to make your home indefinitely out of Australia a few years ago when Australian economy started showing a lack of higher level job opportunities You do not intend to return to Australia as long as your job is ongoing. You have not purchased airline tickets yet. You may return to Australia to visit relatives during holidays. When you do visit Australia, you will not be staying at your original home. You do not have any relatives/friends in Country A. There will be no accommodation provided by your employer. You do not have any assets in Country A. You are living in your own home currently. While you are residing in Country A, your main residence will be rented out. You have a bank account in Australia and have property and cars. You will ship household effects to Country A. Your will have an Australian sourced income through the property you will rent. You have no social and sporting connections in Australia and Country A. You and your spouse were not employed by the Commonwealth Government of Australia for superannuation purpose. You will advise all Australian financial institutions with whom you have investment that you are a foreign resident so that non-resident withholding tax can be deducted. You will advise Australian companies with whom you have investment that you are a foreign resident. You will lodge Country A tax returns when you are employed there. You passenger outgoing card will state "looking for position overseas". You did not have a capital gains tax event I1 to your assets because you ceased to be Australian resident when leaving Australia.


Reasons for decision: Summary: Generally where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes.