Private ruling: Residency – departing Australia
Date of advice: 14 May 2018
Published: July 2018
Ruling period: Year ended 30 June 201X | Year ended 30 June 201X | Year ending 30 June 201X
Date scheme commenced: 1 July 201X

Ruling: Q1: Are you a resident of Australia for tax purposes? | A1: No

Relevant facts and circumstances: You are an Australian citizen. You are single and have no dependants. You departed Australia in May 201X to live in country A You secured contracted employment in country A. You entered country A on a 5 year working visa. You intend to extend your visa on expiration. You rented an apartment in country A. You do not intend to return to Australia. You disposed of your personal assets in Australia. You do not own any assets in Australia. You were not a member of a superannuation scheme established under the Superannuation Act 1990 or an ‘eligible employee’ for the purposes of the Superannuation Act 1976 .

Relevant legislative provisions: Income Tax Assessment Act 1997 section 995-1 | 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. Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency. Accordingly you are not a resident of Australia for income tax purposes under section 995-1 of the ITAA 1997 and subsection 6(1) of the ITAA 1936.