Private ruling: Residency
Date of advice: 3 June 2019
Published: July 2019
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

Relevant facts and circumstances: You were employed by Company A in Australia for the period March 20XX to July 20XX. In July 20XX you ceased employment with Company A and travelled to Country A to commence employment with Company B. Company B is owned by the same parent company as Company A. Your intention was to remain overseas for a minimum of two years. Your flight departure card was marked "Australian Resident departing permanently" in accordance with this intention. The employment contract at Company B was initially for one year however there was an understanding that this would be extended provided all parties were happy with the arrangement. There was no requirement for you to return to Company A and in fact had to renegotiate to be reemployed on your return to Australia. You resided in rental accommodation in Australia and the lease on this property was terminated. You had minimal belongings which were either sold or given to relatives and friends to use. No real estate property was or is owned by you in Australia. You resided in rental accommodation in Country A, the lease was for a 12 month term as is common in Country A and to coincide with the initial employment contract term. You resided in Country A with your spouse. You cancelled your Australian Health Insurance. You opened bank accounts with an international bank into which your salary was paid in Country A. All Australian accounts were closed except those that remained open for travel funds and to receive backpay from Company A. Despite the intention to remain in Country A for in excess of three years the following circumstances changed: · You were offered an Australian based job which was an opportunity you could not refuse. As a result you resigned from Company B and returned to Australia in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(1) | Income Tax Assessment Act 1997 subsection 995-1(1) | Income Tax Assessment Act 1936 subsection 6(1)