Private ruling: Residency
Date of advice: 21 November 2019
Published: January 2020
Ruling period: 1 July 2018 to 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Questions and answers | No. | Yes. | Having considered your circumstances as a whole and the residency tests, it is accepted that you were not a resident of Australia for income tax purposes for period 1 and that you were a resident for periods 2 and 3. | Further information on residency can be found by searching 'QC 33232' on ato.gov.au | Your residency status | As you were a resident of Australia for periods 2 and 3, you will need to lodge an income tax return for the income year ending 30 June 2019. In this return you will need to answer 'Yes' to the question 'Are you an Australian resident?'. You will need to declare all of your Australian sourced income. | Residency for part year and the tax free threshold | You will need to consider the part-year tax-free threshold for the 2019 income year for the two periods when you were a resident of Australia for tax purposes. | If you are returning to Australia with the intention to reside here permanently, your tax-free threshold for the year will be lower than the threshold available to most taxpayers who are Australian residents for the full year. | If you were a resident for part of the year, you have a tax-free threshold of at least $13,464. The remaining $4,736 of the full tax-free threshold is pro-rated according to the number of months you were a resident; including the month you arrived back in Australia: | $13,464 + $4,736 x number of months as a resident of Australia | 12 | To claim the part-year tax-free threshold, you will need to complete item A1 'Part-year tax-free threshold' in the 'Adjustments' section of your tax return. | For a more details discussion of the above, log onto the ATO website at www.ato.gov.au and enter Quick Code QC50527 into search.

Relevant facts and circumstances: Your country of origin is foreign country A. You became an Australian citizen. You are single with no dependants. You resigned from your Australian job. No position or job was held for you in Australia. You left your rented Australian place of residence. You moved to foreign country B. You relocated all your personal effects and some furniture. You sold or got rid of most other furniture. You owned no motor vehicles. Your own one Australian property but it has been an investment property for several years. You maintained your Australian bank accounts to meet mortgage commitments, as well as an investment account and superannuation fund. You advised your Australian private health insurance provider to suspend your policy indefinitely. You maintained your insurance with X because when you asked about your relocation overseas you were advised that they provide worldwide cover. You did not advise the Australian Electoral Commission that you were departing Australia. You did not advise Medicare that you were departing Australia. You cancelled your Australian mobile phone plan. You cut ties with your one Australian social connection. You cancelled your membership to another social organisation. You had no other social and sporting connections in Australia. You started working for your employer in foreign country B on an indefinite (no contract end date) using a work visa tied to your employer, to be renewed in line with employment contract. Your initial intention was to remain in foreign country B for at least two years, with no end date in mind. Your employer in foreign country B provided furnished accommodation in that country for the first month. You moved to a rental apartment in foreign country B with the lease contract under your name ending. You fully furnished the apartment yourself. You obtained a bank account and credit card in foreign country B. You purchased investments in foreign country B. You set up and contributed to a retirement fund in foreign country B. You purchased comprehensive private health insurance in foreign country B through your employer. You secured utility contracts, a mobile phone plan and video and music subscriptions in foreign country B. You signed up for kickboxing classes in foreign country B. In foreign country B you participated in the local video game community. Your lodged a tax return in foreign country B. Your initial intention was to visit Australia once or twice a year for a few weeks for Christmas break and other holidays. You visited Australia, staying with relatives or friends: You resigned from your overseas employment. You returned to Australia after deciding that you did not enjoy the work culture of big companies and learning that several potential smaller companies were not looking to sponsor your work visa at that time. You stayed at a friend's apartment in Australia until you secured a rental apartment. You started working for an Australian employer. In the income year ending 30 June 2019, you were in Australia for less than 183 days and in foreign country B for more than 183 days. You are no longer a contributing member of and you are no longer eligible to contribute to the Public Sector Superannuation scheme or the Commonwealth Superannuation Scheme.

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


Were you a resident of Australia for income tax purposes for period 1? | Were you a resident of Australia for income tax purposes for periods 2 and 3?