Private ruling: Residency for taxation purposes
Date of advice: 31 October 2018
Published: January 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you a resident of Australian for taxation purposes? | A1: No. Given regard to your circumstances as a whole and a consideration of the residency tests and factors outlined in Taxation Ruling IT 2650, it is accepted that you are not a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

Relevant facts and circumstances: You are an Australian citizen. You commenced employment with an organisation in June 2006. Your spouse and three children moved to Country B with you at the end of 2006. You were provided a house in which to live with your family in Country B and you sold your family home in Australia. You have lived in the same house in Country B since then. You have Country B residency, sponsored by your employer. You have two cars, one motorbike, musical equipment, your dog and most of your possessions with you in Country B. You do your banking through a personal Country B bank account. Two of your children have attended boarding school in Australia and travelled to Country B on their school holidays. You have stated you travel to Australia or elsewhere overseas for your holidays. When entering Australia you always mark that you are a temporary visitor on the entry card. In 2015 you and your spouse purchased a house in Australia and moved your stored furniture into the house. The house was not leased out. Your spouse and child spent three months of the year living in the house. You spent holidays in the house which amounted to 10 weeks of the year. In 2018 your spouse and child moved back from Country B to live in Australia so your child could attend school in Australia. Your spouse has established a business in Australia and submits their tax returns as a resident for taxation purposes. You do not intend to return to live in Australia in the foreseeable future. Your spouse intends to return to live with you in Country B at the end of 2019.

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