Private ruling: International - Residency
Date of advice: 18 February 2016
Published: April 2016
Ruling period: Year ended 30 June 2015 | Year ended 30 June 2016
Date scheme commenced: 1 July 2014

Ruling: Question and answer: | Are you a resident of Australia for income tax purposes? | Yes

Relevant facts and circumstances: You arrived in Australia and stayed for a period of time. You travelled to Australia with your family under a Training and Research visa. You were employed while training. You entered a rental agreement for a unit for the period of your stay. You were a member of sporting groups during your stay. Your spouse joined a gym and sporting club as well as attending local training courses.

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

Reasons for decision: Summary: 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. As per Taxation Ruling TR 98/17 (Income tax: residency status of individuals entering Australia) your behaviour whilst you were staying within Australia is used as an indicator as to your status of resident for the given period. The reason for your stay was to work and undergo training (TR 98/17 paragraphs 50 and 55). You travelled to Australia with your family, entered a long-term rental agreement and participated in social activities (TR 98/17 paragraph 59). Given the circumstances as a whole and the relevant residency tests, it is accepted that you are a resident of Australia for the period you were in Australia.