Private ruling: Australian residency for taxation purposes
Date of advice: 22 November 2018
Published: March 2019
Ruling period: Financial year ended 30 June 2018 | Financial year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you an Australian resident for taxation purposes? | A1: No. Given regard to your circumstances as a whole and a consideration of the ordinary concepts and residency tests and other factors outlined in Taxation Ruling IT 2650, it is accepted that you are not a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

Relevant facts and circumstances: You are an Australian citizen. You left Australia to live and work in Country A on a work visa with residency permit. You have committed to an initial two year contract in your current position with a possibility of extension. Your spouse and children joined you in Country A and live with you there in rented accommodation. Neither you nor your spouse currently hold a position with the Commonwealth Government of Australia or are currently eligible to contribute to a government superannuation fund. Your children attend school in Country A and you have joined school organisation there in addition to other sporting clubs and groups. You own a home in Australia which you have rented out indefinitely. You have taken your furniture with you to Country A. You sold your cars and cancelled your Australian insurances, memberships and subscriptions. You have advised the electoral commission to remove you from the roll. You and your family intend to return to Australia to visit family annually for holidays but do not intend to return to live in Australia permanently within the next five years.

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