Private ruling: Residency for taxation purposes
Date of advice: 22 November 2018
Published: March 2019
Ruling period: Year ended 30 June 2022
Date scheme commenced: 1 July 2017

Ruling: Q1: Will you be considered a non-resident of Australia after you have moved to Country A? | A1: Yes 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.

Relevant facts and circumstances: Your spouse has been transferred to Country X on a contract. You moved to Country X in early 20XX. You and your spouse rent your own accommodation in Country X. You do not know if you will return to Australia after the end of the contract. You are renting out your previous main place of residence. You maintain a bank account in Australia. Neither you nor your spouse are eligible to contribute to the PSS or the CSS Commonwealth superannuation funds.

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