Private ruling: Residency
Published: February 2014
Ruling period: Years ending 30 June 2008 - 30 June 2018
Date scheme commenced: 1 July 2007

Ruling: Q1: Are you a resident of Australia for tax purposes? | A1: No

Relevant facts and circumstances: Your country of origin is Australia and you are Australian citizens. You left Australia approximately 10 years ago to travel. You then relocated to country X to pursue employment opportunities. Your house in Australia was rented out and you placed furniture into storage. You moved to country Y a year ago where you will live for an indefinite period of time. You have had three children while you have been living overseas. In country X you lived in rental accommodation and owned two motor vehicles. In country Y you live in a rental property on a two year lease. You have purchased two motor vehicles in country Y and your furniture that was stored in Australia has been shipped to country Y. Both your parents live in Australia and you return on a yearly basis to visit them. You stay in Australia for up to two weeks duration. You have never spent more than 183 days in Australia in any given financial year. You intend your future trips back to Australia will be limited to a few trips per year for a duration of several weeks per trip. You anticipate being present in Australia for less than 183 days during any future income year. When in Australia you would usually stay at your parent's home but as your family has grown you have sought alternative accommodation during your holiday visits. You have purchased a house in Australia for the purpose of staying there when you return to Australia for visits. It remains vacant while you are living in country Y. You have purchased a motor vehicle which is garaged at the house for use when visiting Australia. Your other Australian assets include three investment properties. You are not members of a Commonwealth Government Superannuation Fund.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 995-1(1) | Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1936 Subsection 6(1)

Reasons for decision: Summary: An Australian resident for tax purposes is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to be 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 Income Tax Assessment Act 1936 . The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are the: • 'resides' test (ordinary concepts test) • domicile and permanent place of abode test; • 183 day test; and • Commonwealth superannuation fund test. For the reasons you provided you are not a resident of Australia for tax purposes from the date you left Australia. | Detailed Reasoning - Conclusion: As you do not meet any of the above tests, you are not a resident of Australia for tax purposes. As you are not a resident of Australia, according to section 6-5 of the ITAA 1997 , your assessable income includes income gained from sources in Australia.