Private ruling: Australian sourced income
Date of advice: 21 October 2019
Published: January 2020
Ruling period: Year ended June 30 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Is the income you earned in Australia as a short term contractor assessable income in Australia? | A1: No. The income you earned in Australia is not assessable income in Australia. Your income is only taxable in Country A as you were not carrying out your professional services through a permanent establishment in Australia.

Relevant facts and circumstances: You are a resident of Country A who arrived and departed Australia several times during the 2018-19 income year. On each occasion you arrived under a temporary work visa to work as a short term contractor. You spent less than 183 days in Australia in the 2018-19 income year. When working in Australia, you were represented by Company A. You worked in various activities under contract with multiple Australian companies. During your time in Australia you earned an amount in gross revenue. You have provided a copy of booking agreements for each customer provided by Company A for your work in Australia. You have provided a statement of Australian activity showing total gross commission and PAYG tax withheld. Most of your services were booked for one or two days of work. You worked in multiple locations, demonstrating that you did not have a fixed base in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(3) | International Tax Agreements Act 1953 Article 4 | International Tax Agreements Act 1953 Article 5 | International Tax Agreements Act 1953 Article 14