Private ruling: Residency for taxation purposes
Date of advice: 24 October 2018
Published: December 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will you be considered a non-resident of Australia after you have moved to Country A? | A1: Yes 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(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

Relevant facts and circumstances: You were born in Country A. You became an Australian citizen in 19XX. You left Australia and moved to Country B in late 20XX. You have informed Medicare of your departure and suspended your private health insurance. You advised your banks you will temporarily moving to Country B. You accompanied your spouse to Country B as they have started a new job there. Your spouse is living in Country B with you. You do not intend to return to Australia within the next two to three years. You have purchased your own home in Country B. You have two properties in Australia which you rent out. You have two bank accounts in Australia and one in Country B. You have furniture and household goods in Australia and Country B. You were previously an eligible member of the Commonwealth Superannuation Scheme (CSS) until you retired from government service in 20XX. You do not have a job or position being held for you in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1) | Income Tax Assessment Act 1997 Subsection 995-1(1)