Private ruling: Lodgment of income tax returns
Published: September 2013
Ruling period: 01/07/2012 to 30/06/2013
Date scheme commenced: 01/07/2012

Ruling: Q1: Are you required to lodge an income tax return for future years? | A1: You must assess your situation at the conclusion of each income year to determine if you are required to lodge an income tax return.

Relevant facts and circumstances: You are currently unemployed. You have no income so far for the relevant income year. You are looking to move and work overseas from 1 June 20XX for as long as you possibly can on a permanent term. You are an Australian citizen. You will be returning to Australia once every few months to visit relatives whilst you can. You do not own a house in Australia.

Relevant legislative provisions: Section 161 of the Income Tax Assessment Act 1936

Reasons for decision: Summary: Subsection 161(1) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that; Every person must, if required by the Commissioner by notice published in the Gazette, give to the Commissioner a return for the year of income within the period specified in the notice. The Gazette in which the notice is published has been replaced by a Legislative Instrument. The Legislative Instrument "Lodgment of returns for the year of income ended 30 June 2013 in accordance with the Income Tax Assessment Act 1936 , the Income Tax Assessment Act 1997, the Taxation Administration Act 1953, the Superannuation Industry (Supervision) Act 1993 and the Income Tax (Transitional Provisions) Act 1997 (F2013L00925)" (Legislative Instrument) governs the lodgment of income tax returns. The requirement to lodge an income tax return varies depending on whether you are resident of Australia for taxation purposes. A resident of Australia for taxation purposes is defined in section 6 of the ITAA 1936 and means A person, other than a company, who resides in Australia and includes a person; (i) whose domicile is in Australia, unless the Commissioner is satisfied that the person's permanent place of abode is outside Australia; (ii) who has actually been in Australia, continuously or intermittently, during more than one half of the year of income, unless the Commissioner is satisfied that the person's usual place of abode is outside Australia and that the person does not intend to take up residence in Australia; or (iii) who is: (A) a member of the superannuation scheme established by deed under the Superannuation Act 1990 ; or (B) an eligible employee for the purposes of the Superannuation Act 1976 ; or (C) the spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B). If you are deemed to be a resident of Australia for taxation purposes based on the definition above, your lodgement obligations are different to those who are not deemed to be a resident of Australia for taxation purposes. You should therefore, at the end of every income year, assess your circumstances to determine if you are considered to be a resident of Australia for taxation purposes for that income year. The Legislative Instrument advises who is required to lodge an income tax return. A new Legislative Instrument is issued for each income year. For the relevant income year if you are deemed to be a non resident of Australia for taxation purposes (i.e. you do not meet the conditions prescribed above) in accordance with Table D of the Legislative Instrument you are required to lodge an income tax return where you derive income (including capital gains) that is taxable in Australia other than: · dividend, interest or royalty income subject to withholding covered by Subdivision 12-F in Schedule 1 to the Taxation Administration Act 1953, and · fund payments from managed investment trusts subject to withholding covered by Subdivision 12-H in Schedule 1 to the Taxation Administration Act 1953 . Further, Table E of the Legislative Instrument prescribes that where a person was only an Australian resident for only part of the year of income and whose taxable income exceeded the lesser of $18,200 or $13,464 plus $395 for each month the person was an Australian resident (including the month in which the person became, or ceased to be, an Australian resident), that person must also lodge an income tax return. Table M of the Legislative Instrument applies certain exemptions to Tables D and E listed above (examples of this include a person in receipt of certain social security benefits or allowances and whose taxable income was less than or equal to $20542.) If you are deemed to be an Australian resident for taxation purposes then the usual rules that apply to lodging an income tax return for residents will apply to you. Examples of this include; · being in receipt of certain Centrelink benefits and allowances · having tax withheld from certain payments of salary and wage under the Pay As You Go system · carrying on a business · incurring a tax loss To determine, at the end of the income year, if you are required to lodge an income tax return, there are various sources that can advise you if you are required to lodge. These include; · Individual tax return instructions - these instructions can be downloaded or ordered online from www.ato.gov.au. They are also available at ATO shopfronts and from newsagents during July to September. · www.ato.gov.au has a tool available to assist you with determining if you need to lodge an income tax return. Consequently, the Commissioner cannot make a determination in this ruling as to whether you are required to lodge an income tax return in the future or not. You should assess your situation at the end of each income year to determine your lodgement obligations.