Private ruling: Residency for tax purposes
Published: June 2012
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 | Year ending 30 June 2012
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you an Australian resident for tax purposes? | A1: Yes.

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. You are employed by an Australian organisation. You have been working in Country X since 2008. You may continue working in Country X for several more years. Under your employment contract, your accommodation is guaranteed and provided by your employer. On completion of your work in Country X, you intend to live in Australia permanently. When you are not working in Country X, you generally return to Australia. You have a bank account and a superannuation fund account in Australia. You do not own any property in Australia or overseas. Your spouse is a citizen of Country Y and is currently in Australia on a tourist visa. When you go to Country X, your spouse accompanies you. You stay with relatives when you are in Australia. Neither you, nor your spouse, have ever been Commonwealth government employees.

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

Reasons for decision: Summary: Generally 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 terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are a resident of Australia for tax purposes.

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