Private ruling: Residency of Australia for taxation purposes
Date of advice: 25 November 2025
Published: 12 January 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a resident of Australia for taxation purposes from the relevant date? | A1: No. | Q2: Is the employment income earned by you while working in Country Z for Employer Z for the relevant income year assessable in Australia? | A2: No.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You are not a permanent resident of any other country. You and your spouse left Australia to move to Country Z. You enter Country Z on a residence visa which allows you to remain in Country Z as long as you are employed. Your employer offered you a relocation opportunity, to take an assignment in Country Z. You have worked for the Employer Z Australia for a number of years. You were offered a local Country Z contract for an initial term plus extension on a fixed term contract. The contract is governed by Country Z law. You are paid into a Country Z bank account in local currency. The office in Australia is separate to that of the office in Country Z. Your employment with your employer's Country Z branch formally commenced several months ago. Due to administrative issues in setting up a company bank account in Country Z, the company kept you on an Australian payroll after your departure for the remainder of the financial year. Following the company's offer, your spouse secured employment in Country Z, with their role commencing several months ago. You have notified the Australian Electoral Commission and your private health insurance provider of your permanent relocation to Country Z, prior to your departure from Australia. Your main residence in Australia has been rented out. You have signed a property lease in Country Z. This property is semi furnished. You have purchased some items for the property in Country Z. You took personal items and some household items to Country Z with you. You relocated your pet to Country Z. You and your spouse have returned to Australia for a holiday. During your visit to Australia, you disclosed on the immigration arrival cards that you are visiting family in Australia. You have parents and siblings remaining in Australia. Neither you nor your spouse are eligible to contribute to the PSS or the CSS super funds.

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

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 taxation purposes as follows: • You are not a resident of Australia according to the resides test. • You do not meet the domicile test. Your domicile is in Australia, but the Commissioner is satisfied that you have a permanent place of abode outside Australia based on the following: - Your residence in Australia has been rented out since DD MM 20YY. - You and your spouse left Australia on DD MM 20YY to move to Country Z. - You enter Country Z on a residence visa which allows you to remain in Country Z as long as you are employed. - Your employment with Employer Z formally commenced on DD MM 20YY. - You have signed a two-year property lease in City Z commencing on DD MM 20YY. - You and your spouse have returned to Australia for a holiday from DD MM 20YY to DD MM 20YY. - During your visit to Australia, you disclosed on the immigration arrival cards that you are visiting family in Australia. - In MM 20YY, your employer, offered you a relocation opportunity, to take an assignment in Country Z, to assist, the Company in establishing a local presence. - You were offered a local Country Z contract for an initial term of X years plus X year extension on a fixed term contract. - You are paid into a Country Z bank account in local currency. • You do not meet the 183 day test. • You do not meet the requirements of the Commonwealth Superannuation test. You are not a resident of Australia for taxation purposes. For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals . Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. The income you derived for the relevant period paid by the Australian branch of your employer is considered to be not Australian sourced income. This income is not required to be declared in your Australian tax return.