Private ruling: Income tax - Assessable income – Residency
Date of advice: 10 January 2019
Published: April 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No. Given regard to your circumstances as a whole and a consideration of the residency tests, it is accepted that you are not 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 international pilot and are required to travel on various international routes. You and your spouse are originally from Country X and are both citizens of Country X. Your extended families reside in Country X. You and your spouse lived in Australia and were treated as residents of Australia for taxation purposes. During this time you were based in Australia. You and your spouse departed Australia in 20XX to live in Country Y as you had accepted a position based out of Country Y. You currently live in Country Y with your spouse and two children. You live in a house under a tenancy agreement in your name. The current agreement runs to 20XX. The house is tenanted on an unfurnished basis therefore all the furniture belongs to you and your family. You, your spouse and children have Country Y residency for immigration purposes while you remain employed by the airline. The family policies for health insurance, travel insurance and your dental and medical providers are based in Country Y. You and your spouse own cars in Country Y and each have a drivers’ licence in Country Y. Your spouse and your eldest child play sport with sporting clubs in Country Y. You and your spouse own investment properties in Country X. You and your spouse own an investment property in Australia. You lived in it until you departed Australia. It has now been rented out. You are in the process of looking for a holiday home to purchase in Country Z. You are not on the Australian electoral role. Neither you nor your wife are eligible to contribute to Commonwealth Superannuation funds. Your spouse and children (your family) will be returning to Australia in 20XX to live. You consider living in Australia to be a better option in the interim for your family considering: ● The pollution in Country Y ● The quality of schooling in Australia, and ● The convenience of the flight access from Australia back to Country Y, taking into account the number of flights available, travel time and the time difference between Australia and Country Y. Your family plan to rent a dwelling in Australia, they will not live in your investment property. You will remain living and working in Country Y for at least the next two years, as that will provide you with the necessary experience to open up your employment opportunities more generally with other airlines around the world. During this time you will financially support your family. You plan to visit your family once or twice a month but will not be in Australia for more than 90 days in each year. During most school holidays your family will either travel to Country Y or the proposed holiday home in Country Z to meet you. Most of your belongings will remain in Country Y. Some will be in the home in Country Z post acquisition. A few minor items will be in Australia for convenience on visits. Your spouse and your child intend on playing with their sporting teams when they are able to on return trips to Country Y. You plan to move back to Country X permanently, after working for a couple of years in Country Y.

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