Private ruling: Residency of Australia for taxation purposes
Date of advice: 31 January 2025
Published: 24 March 2025
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will you remain a resident of Australia for taxation purposes for the relevant period while in Country Z? | A1: Yes.

Relevant facts and circumstances: You were born in Country Z. You are a citizen of Australia. You intend on returning temporarily to Country Z in later this year and returning to Australia a couple of years later. You will not remain permanently in Country Z. You are returning to Country Z to care for your aging parents with medical issues. Your spouse and child will accompany you to Country Z. You will stay with your parents while in Country Z. You will work remotely for your Australian employer as a full-time employee receiving salary into an Australian Bank Account and superannuation contributions, and other benefits while in Country Z. You will not be paying tax on your Australian income while in Country Z. Your spouse will resign their position in Australia and take a career break while they are in Country Z. You have the following assets in Australia: • Family home • Superannuation • Personal items • Furniture You do not have any assets in Country Z. You will either rent your home out in Australia while you are in Country Z, or you may sell it prior to going to Country Z. You will store your household items with a friend in Australia while you are in Country Z. You do not intend on returning to Australia while you are in Country Z. If you do return to Australia, it will only be for a short visit. You have placed your child's name on a school waiting list for them to attend when they return to Australia. Neither you nor your spouse are eligible to contribute to the PSS or the CSS super funds.

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

Reasons for decision: Summary: For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests. • The resides test (otherwise known as the ordinary concepts test) • The domicile test • The 183 day test • The Commonwealth superannuation fund test We have considered your circumstances, and conclude that you will be a resident of Australia for tax purposes for the relevant income years as follows: • You are a resident of Australia according to the resides test. • You intend on going to Country Z on a temporary basis to care for your parents. • You intend on returning to Australia. You do meet the domicile test. The Commissioner is satisfied that you will not have a permanent place of abode in Country Z for the period you are in Country Z. You will not meet the 183-day test. You do not fulfil the requirements of the Commonwealth superannuation fund test. In summary, you will be a resident of Australia for tax purposes for the relevant income years.