Private ruling: Residency for Taxation purposes
Date of advice: 14 November 2017
Published: April 2018
Ruling period: Year ending 30 June 201C | Year ending 30 June 201D | Year ending 30 June 201E
Date scheme commenced: 01 July 201B

Ruling: Q1: Are you a resident for taxation purposes? | A1: No

Relevant facts and circumstances: You were born in country A. You are an Australian citizen. You have an Australian passport. Your parent is a resident of country B. You travelled to country B to care for him/her when they became ill. You left Australia in early 201A. You travelled on a tourist visa. Your tourist visa is required to be renewed every 90 days. You travel out of country B to a neighbouring country to renew your visa. Currently you are eligible to remain in country B until early 201F You have never returned to Australia since your departure in early 201A. Your parent is in a nursing home where they have been cared for since mid 201B. You attend the nursing home on a daily basis. You lived with your parent until they were admitted to the Nursing Home. You now rent a property in country B as your parents’ home was returned to the Government when they entered the Nursing Home in mid 201B. You intend to return to Australia when your parent passes away. Your Australian property is leased out and is not available to you. You support yourself in Country B on the income from a rental property in Australia. You have never been an employee of the Australian Government.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1).

Reasons for decision: Summary: You are not a resident of Australia for taxation purposes as you do not meet any of the four tests that determine residency. The terms resident and resident of Australia, in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are the: ● the resides test, ● the domicile test, ● the 183 day test, and ● 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. You have been living in Country B since early 201A and will continue to live there with no set date to return; currently your visa allows you to remain until early 201F. You have stated that you will continue to stay in Country B until your parent passes away.