Private ruling: Residency
Date of advice: 23 March 2018
Published: June 2018
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you a resident of Australia for taxation purposes? | A1: Yes.

Relevant facts and circumstances: You were born in Country A. You are a citizen of Country A. Your spouse is a Country A citizen. You are a sole director of a company. You maintain a bank account in Country A. You own a property in Country A. You are renting out your Country A property. Your personal possessions have been placed in storage until you return. You departed Country A. You intend to return to Country A in Summer 20xx. You currently rent an apartment in Country B. You and your spouse are not eligible to contribute to the relevant Commonwealth super funds.

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

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of ‘resident’ within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: 1. the resides test 2. the domicile test 3. the 183 day test 4. the superannuation test The primary test for deciding the residency status of each individual is whether they reside in Australia according to the ordinary meaning of the word resides. If the primary test is satisfied the remaining three tests do not need to be considered as residency for Australian tax purposes has been established. Given the circumstances as a whole and the relevant residency tests, it is accepted that you are a resident of Australia.