Private ruling: Residency for taxation purposes
Date of advice: 5 November 2018
Published: February 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you considered a non-resident of Australia from 20XX? | A1: Yes Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms ‘resident’ and ‘resident of Australia’, in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are: ● the resides test, ● the domicile test, ● the 183 day test, and ● the superannuation test. If any one of these tests is met, an individual will be a resident of Australia for taxation purposes. Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency. Accordingly 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 a citizen of Australian and Country X You hold a current Country X passport and Identity card You are registered to vote in both Country X and Australia You do not have health or travel insurance in Australia You intend to obtain health insurance in Country X Your Medicare card will expire later in the year You currently hold a valid Australian drivers licence You left Australia in early 20XX with your spouse You do not have a permanent home in Australia You live in a rental apartment which is furnished with rented and personal items You have family and friends in Australia and have return to visit them, staying in Australia for approximately a month on each occasion You do not intend to return to Australia and intend to live in Country X You have a joint Country X bank account with your spouse and a joint business account in Country B You have multiple superannuation accounts in Australia but have not contributed to the funds since your departure from Australia You have social connection in both Country X and Australia Your business currently operates out of the Country C which is where you earn income and pay taxes Neither you nor your spouse are eligible to contribute to the PSS or the CSS Commonwealth superannuation funds.

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