Private ruling: Residency
Date of advice: 25 September 2015
Published: September 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ending 30 June 2016
Date scheme commenced: 1 July 2013

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

Relevant facts and circumstances: You are a citizen of Australia. You were born in Country X. You left Australia to work in Country X in 20XX. You went to Country X on a work visa supplied by your employer. This visa allows you to stay in the country for one year and can be renewed on a yearly basis. You don't have an intention to make your home indefinitely outside of Australia. You intend to return to Australia within the next three years. Since the time you left, you have returned to Australia for holidays. This was for a period of three weeks or less from 20YY to 20ZZ. You do not have a spouse. You do not have any dependents. In Australia you lived in your main residence. You sold your main residence prior to leaving for Country X. In Country X you arranged to obtain a lease on a rental property which is renewed each year. On your visits to and from Australia, you completed the inward and outward passenger cards by noting that you are a citizen of Australia. You have a block of land in Australia and two bank accounts. You do not have any investments in Australia. You sold your household effects prior to your departure. You threw away your personal effects. In Country X you have two bank accounts. You did not maintain any professional, social or sporting connections in Australia. You did not establish any professional, social or sporting connections in Country X. You notified Australian Electoral Commission that you are departing Australia. You did not have any private health insurance when you were in Australia. You were not employed by the Commonwealth of Australia.

Relevant legislative provisions: Subsection 6(1) of the Income Tax Assessment Act 1936

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 not a resident of Australia from 1 July 2013.