Private ruling: Residency
Published: February 2013

Ruling: Question and answer: | Are you a resident of Australia for income tax purposes? | No. | This ruling applies for the following periods | Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | The scheme commences on | 1 July 2011

Relevant facts and circumstances: You are an Australian citizen. You have been living and working overseas since 2010. You are currently employed by an Australian based company working out of country Y. You are living in country X with your spouse who is a citizen of that country. You are currently living in accommodation rented from a relative of your spouse and intend to purchase a house in country X. You own a business in country X. You intend to live in country X permanently and have applied for citizenship. You have children from a previous relationship who live in Australia. You visit them from time to time and also pay child support for them. When you visit Australia you stay in motels or with family. Your only Australian asset is a motor vehicle kept in storage. You are not employed by the Australian Commonwealth government.


Reasons for decision: Summary: Generally where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au . Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.