Private ruling: Temporary residency
Date of advice: 27 May 2019
Published: July 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you a temporary resident as an Australian resident for taxation purposes for year ending 30 June 2019 and future financial years? | A1: Yes. Given regard to your circumstances as a whole and consideration of the relevant residency tests, it is accepted you are a temporary resident of Australia for income tax purposes. Further information on residency can be found by searching QC 33232 on ato.gov.au | Q2: Can your joint overseas investment income not be subject to tax in Australia? | A2: Yes. As a temporary resident provisions of Australia’s tax law may operate to exclude certain foreign source income from being assessable in Australia. It is accepted your income is derived from sources outside Australia. Further information on foreign income for temporary residents can be found by searching QC 18869 on ato.gov.au

Relevant facts and circumstances: You are an overseas citizen and retired. You are a non-resident of your birth country for tax purposes. You spent the past ten years or more living overseas. You have a joint retirement savings invested overseas and you have tax withheld at a specified percentage on the income generated from your overseas savings. You have a residential home overseas with a 50% ownership interest but you have not occupied this dwelling for many years. This is your only overseas asset. You have family who reside in Australia and overseas. In 20XX you moved to Australia to be closer to your family. You are not an Australian resident within the meaning of the Social Security Act 1991. When you arrived in Australia you purchased Australian real property with a 50% ownership interest. You set up your personal belongings and connected utility services. You do not know how long you will stay but you have been in Australia for over 183 days. You have a routine since arriving maintaining a lifestyle, paying bills and have social arrangements.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 6-15 | Income Tax Assessment Act 1997 section 768-910 | Income Tax Assessment Act 1997 section 768-980 | Income Tax Assessment Act 1997 section 770-10 | Income Tax Assessment Act 1997 section 995-1