Private ruling: Residency
Published: April 2012
Ruling period: Year ending 30 June 2012 | Year ending 30 June 2013
Date scheme commenced: 1 July 2011

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

Relevant facts and circumstances: You are an Australian citizen. You have no spouse or children. You have been living in the foreign country since the year ended 30 June 2009. You have been employed full time on a two year contract as a locally engaged staff member at the Australian authority in the foreign country. Your contract with the Australian authority expired in the year ending 30 June 2012 but you have negotiated a renewal of your contract for a further two years. You are renting in the foreign country on a long renewable lease. You do not own a home in Australia. You are not a contributing 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 an Australian resident for tax purposes. | Detailed Reasoning - Detailed reasoning: You do not satisfy the four residency tests: Resides test You have been living in the foreign country from the year ended 30 June 2009. You are renting in foreign country on a long renewable lease. Your contract with the Australian authority expired in the year ending 30 June 2012 but you have negotiated a renewal for another 2 years. 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 your domicile is in Australia being an Australian citizen with no indication of changing your domicile, your permanent place of abode is outside Australia. You have established a home in the foreign country, living in rented accommodation which was not of temporary nature. Your stay in the foreign country is not transitory having worked in the foreign country and currently on a contract with the Australian authority. You have 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.