Private ruling: Tax status
Published: October 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Question and Answer: | Do you need to include in your tax return income received from Australia as well as income received from Country A? | Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are an Australian resident for tax purposes. You left Australia for Country A on date A in the 2009-10 income year in order to look after a relative. You earned an amount in Country A from doing local work in the 2010-11 income year. You did not pay any tax on this income. You earned investment income from Australian sources in the 2010-11 income year. You plan to return to Australia in early 2012.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2).

Reasons for decision: Summary: An Australian resident is assessable in Australia on income from all sources whether earned in or out of Australia. As you are an Australian resident for tax purposes you are assessable on income earned from Australia as well as outside Australia. Thus the income which you earned in Country A from doing local work is assessable in Australia and will need to be included in your tax return. Also income earned from sources in Australia will need to be shown in your tax return even though you are currently living in Country A. | Detailed Reasoning - PAYG Instalments: It is possible to vary your PAGY instalment rate or instalment amount if you believe the instalment amount is too high. The enclosed booklet How to vary pay as you go (PAYG) instalments will assist you.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.