Private ruling: Residency
Date of advice: 12 April 2024
Published: 27 May 2024
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 20YY

Ruling: Q1: Is Person A considered to be a non-resident for income tax purposes in Australia from DD MM 20XX and Person B from DD MM 20XX? | A1: You do not meet any of the four tests for Australian tax residency, therefore Person A is not a resident of Australia for tax purposes from DD MM 20XX, and Person B from DD MM 20XX.

Relevant facts and circumstances: You are Australian citizens. Person A has permanently departed City A on DD MM 20XX to commence a new life in Country B along with your spouse, Person B, and your children. Person B has permanently departed City A on DD MM 20XX to commence a new life in the Country B along with your spouse, Person A, and your children. You have cancelled your Australian gym memberships. You have notified your Australian banks that you are no longer residents of Australia so that non-resident withholding tax can be applied. You have removed yourselves from the Australian Electoral role. Person B cancelled their Australian private health insurance cover. You are no longer members of any Australian associations. Person A has cancelled their membership with X Association. You sold your cars prior to departing Australia. You jointly own a property in Australia that is being used as a residential investment property. This property is being rented out to unrelated parties on a commercial lease. The property has always been owned as an investment property and is managed by a real estate agency. You sold all your belongings in Australia prior to departure. You own no other assets in Australia. Person A, Person B and your children have attained residency visas in Country B. Your children are enrolled in schools in Country B. You have obtained driver's licences in Country B. You have secured permanent accommodation in Country B. You rent an unfurnished apartment of which you furnished when moving in. Person A has joined a gym in Country B. You have no intention of returning to reside in Australia. You will remain living in Country B over the ruling period and will not return to Australia for purposes other than holidays to visit family.

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

Reasons for decision: Summary: For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests. • The resides test (otherwise known as the ordinary concepts test) • The domicile test • The 183 day test • The Commonwealth superannuation fund test We have considered your circumstances, and conclude that you are not a resident of Australia for the years ended 30 June 20XX, 20XX, 20XX and 20XX as follows: • You are not a resident of Australia according to the resides test. • You do not meet the domicile test because your domicile is not in Australia. • You do meet the 183 day test because you were not in Australia for 183 days or more during the relevant income years. • You do not fulfill the requirements of the Commonwealth Superannuation test. Therefore, Person A is not a resident of Australia from the date of their departure on DD MM 20XX. Person B is not a resident of Australia from the date of their departure on DD MM 20XX. | Detailed Reasoning - More information: For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals .