Private ruling: Residency
Date of advice: 18 September 2017
Published: February 2018
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2017

Ruling: Questions and answers: | Are you a resident of Australia for income tax purposes? | No.

Relevant facts and circumstances: You are a citizen of Australia. You were born in Australia. You went to country Y on in the 2018 income year to work. Your contract is for 2 years and you can extend the contract. You have a work visa to enter country Y and this is renewed every 12 months. You intend on being in Country y for 4 years working. You have taken leave without pay from your employment in Australia. You live in employer provided accommodation in Country Y. The accommodation is for your sole use. You will live in the one location for the duration of your stay in Country Y. You have taken personal items to Country Y with you. You do not have any property in Australia. You will return to Australia in 2019 for Christmas. You will stay with family when you return. You do not have any dependants. You do not have a spouse. You are not eligible to contribute to the PSs or the CSS 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: 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 for the period you are working in Country Y. You are not required to declare the income you derive in country Y in your Australian tax return.