Private ruling: Income - assessability
Date of advice: 19 December 2023
Published: 12 February 2024
Ruling period: Period ended 30 June 2022 | Period ended 30 June 2023 | Period ending 30 June 2024 | Period ending 30 June 2025 | Period ending 30 June 2026
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the income you earn in Australia assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. Your work as a specialist consultant falls within the definition of 'business'. As you work in Australia for short periods in an information collecting capacity, you do not have a 'permanent establishment' in Australia. Therefore, under an article of Country A Tax Treaty, your income is only taxable in Country A as you were not carrying on your professional services through a permanent establishment in Australia. The income you earned while working as a specialist consultant in Australia is therefore not assessable income under section 6-5 of the ITAA 1997. You will need to include the income in your Country A tax return.

Relevant facts and circumstances: You are a citizen of Country A and a resident of Country A for taxation purposes. You are a specialist consultant. You entered into a contract with an Australian company (Company X) to prepare reports on Australian patient cases. You work exclusively by telehealth from your home in Country A and you fly to Australia 4-5 times a year. When you are in Australia you interview various patients in consulting rooms organised by Company X and return to Country A to prepare reports for Company X. You have an ABN and are registered for GST. You conduct the work as a contractor. You are not an employee.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | International Tax Agreements Act 1953 section 4 | International Tax Agreements Act 1953 section 5