Private ruling: Residency
Date of advice: 6 May 2020
Published: June 2020
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you a resident of Australia for income tax purposes for the years ended 30 June 2018 and 30 June 2019? | A1: Yes. Having considered your circumstances as a whole and the relevant residency tests, you are a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au

Relevant facts and circumstances: You are an Australian citizen. Prior to 1999 you resided in Australia where you and your spouse owned a home. In 1999 you moved to Country A on a three year secondment In 2002 you returned to Australia. Between 2004 and 2014 you returned to Country A for employment. In 2005 your spouse and children joined you in Country A. Whilst in Country A, · You and your spouse continued investing in the Australian property market. · Your children attended an international school, · You socialised and purchased motor vehicles and water crafts · Your family enjoyed various sporting activities · Your family owned pets. Between 2013 and 2014 your spouse and children returned to Australia and moved into an apartment. This return was due to your spouse's requirement to undertake work experience in relation to their studies. In this time your child commenced boarding school. Your work contract provided return flights for your family which were utilised throughout that year. In 2014 your other child commenced boarding school and your spouse returned to Country A. In 2014 your employer was taken over by another company. In 2015 your spouse returned to Australia and rented an apartment. The children moved in with them at the end of the school year. In 2016 you ceased work in Country A and returned to your family in Australia. In 2016 you and your spouse acquired a house in Australia and moved in with the intention of making it your principal residence. In 2017 you enquired after work in Country B and was offered a position however as the return flight was extremely long compared to Country A you declined this offer in favour of another position in Country A. Your spouse and children remained in Australia. You returned to your family every four weeks and spent 75 to 80 days per year in Australia. Your spouse secured employment following their studies in Australia. Your new position provided you with a furnished apartment and car. All utilities, car and business expenses were paid by the employer. All of your belongings remained in Australia. Your employment contract included an airfare allowance to enable the family to visit as well as a 20 foot shipping container for your move back to Australia. These conditions are similar to those of your previous contracts. You maintain one month's salary in a foreign bank account and the balance is transferred to the joint Australian bank account you hold with your spouse. In 2019, tax was withheld from your income in Country A. An apartment purchased in 2007 was initially you and your spouse's residence. This apartment was used as a rental and now is listed on Airbnb. Your spouse manages this investment. The current Australian family home is expected to be the main residence for the long term. You and your spouse own two vehicles in Australia. You expect to continue working in Country A for another five years. You and your spouse also own a flat in Country C which was purchased in 2011. This flat has been used as a rental. As the rent received on this flat was below the tax free threshold no foreign taxes have been paid. Your other child has moved into the apartment in Country C and they are employed with a local company.

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