Private ruling: residency
Published: May 2012
Ruling period: Year ended 30 June 2011 | Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2007

Ruling: Q1: Are you an Australian resident for taxation purposes? | A1: No.

Relevant facts and circumstances: You left Australia in the year ended 30 June 2008 to work at the Australian authority in the foreign country. You are employed under contract at the Australian authority in the foreign country. Your contract in the foreign country expires in the year ending 30 June 2014. You hope to extend the contract for at least two years. You plan to stay in the foreign country for the foreseeable future. You have returned to visit your family for few weeks in the year ended June 2008. You have purchased a residence in the foreign country with your partner. Your partner is in the foreign country. You have numerous bank accounts in the foreign country. You do not own a home in Australia, or bank accounts in Australia. You state you are not a member of an Australian government superannuation scheme.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1).

Reasons for decision: Summary: You are not a resident of Australia for taxation purposes. | Detailed Reasoning - Detailed reasoning: You do not satisfy the four residency tests: Resides test You have been living in the foreign country since the year ended 30 June 2008 coming back to Australia once for few weeks to visit family. You have purchased a residence with your partner who is a citizen of the foreign country. You have also been working in the foreign country and intend to extend your contract when it expires in the year ending 30 June 2014. The length of your absence from Australia and your establishment of a home and working in the foreign country are not consistent with residing in Australia. Domicile test Even though you have stated that you intend to reside in the foreign country indefinitely, your domicile is still in Australia being an Australian citizen with no indication of having taken steps to change your domicile. However your permanent place of abode is outside Australia. You have established a home in the foreign country, having purchased a residence there. Your stay in the foreign country is not transitory having worked in the foreign country and currently on an ongoing contract with the Australian authority until the year ending 30 June 2014 with intention to extend. You are in domestic relationship with your partner who is a citizen of the foreign country. Your assets are mainly in the foreign country. You haves no established home of your own in Australia and no dependants. 183-day test This test is not applicable to you. Superannuation test This test does not apply to you as you are not a member of the CSS or the PSS.

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.