Private ruling: Residency for tax purposes
Published: June 2012
Ruling period: Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: Question and answer | Are you a resident of Australia for taxation purposes from when you left Australia? | No.

Relevant facts and circumstances: You have gone overseas to live and work. You have a resident permit for the overseas country. You intend to remain overseas indefinitely. You have a work contract overseas which will be renewed every two years. As part of this contract you will receive 4 weeks annual leave and a travel allowance which you will use to return to Australia and visit other parts of the world. You live in rented accommodation overseas. You will pay tax overseas on all of your income. You currently have no assets overseas. You have a car in Australia which you may sell. You have never been a Commonwealth Government employee.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1). | Income tax Assessment Act 1997 Section 6-5. | Income Tax Assessment Act 1997 Subsection 995-1(1).

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of 'resident' within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: · the resides test · the domicile test · the 183 day test · the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes from when you left Australia. The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au.

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.