Private ruling: Residency - Leaving Australia
Date of advice: 24 June 2016
Published: August 2016
Ruling period: Year ended 30 June 20yy.
Date scheme commenced: 1 July 20xx

Ruling: Questions and answers | Are you a resident of Australia for taxation purposes? | No


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

Reasons for decision: Summary: 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: You are a citizen of Australia and Country A. | You were born in Australia. | You have a passport that allows you to stay in Country A. | You left Australia in 20xx. | Your intention was to remain in Country A for about a year. | This changed to just over two years due to your partners work and studies. | It has always been your intention to return to Australia however time frame was not 100% certain. | You have not returned to Australia since leaving for Country A. | The purpose of the trip was to live in Country A while your partner completes their studies. | The expected timeframe was a year to complete their studies and to be away from Australia for eighteen months approximately. | Due to unforeseen delays the studies have taken longer than anticipated. | As a result you will be living in Country A for over two years. | You expect to be in Country A for between two to five years. | You are living in a flat in Country A which you share with your partner. | Your rental agreement runs out on 30 June 20zz. | You have been engaged in paid work in Country A since 20xx. | In Australia you owned your own home. | It is currently being rented out to friends while you are living Country A. | You are using this address for bank information, house and car insurance. | You have bank accounts and motor vehicles in Australia. | Your household effects are being stored in your shed at your Australian house. | You have a bank account and have purchased a motor vehicle in Country A. | You have no social or sporting connections in Australia or Country A. | You are not employed nor have you been employed by the Commonwealth of Australia.