Private ruling: Residency
Date of advice: 7 August 2017
Published: November 2017
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: DDMMYY

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

Relevant facts and circumstances: You were born in Australia. You are a citizen of Australia. Prior to mid 201X you lived and worked in Australia. In mid 201X you moved to country Y for work purposes and to live. You have a visa to work in the overseas country. The visa has been extended for the next few years. You have returned to Australia three times since leaving Australia in for short visits, these visits did not exceed 183 days. You stayed either with friends, hotels or family on these visits. You do not intend on returning to Australia in the 2017 income year. You are single. You have visited other countries as a tourist. You have taken steps to obtain permanent residency in Country Y. You do not hold any real property in the world. You live in rented accommodation in Country Y. You have accumulated household items in Country Y. You have the following assets in Australia: ● Bank account ● two credit cards ● Super fund which has had no contributions since 2012 ● You are a director of a family trust and you receive no income from this ● Royalty payments from intellectual property which you own that is licensed to a third party You have a postal box, mobile phone plan and health fund in Australia. You sold or disposed of all your belongings in Australia before leaving for Country Y. You have the following assets in country Y: ● Two bank accounts ● Two credit cards ● Access to employee incentive shares You pay tax in country Y. You are not eligible to contribute to the PSS or the CSS super fund.

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

Reasons for decision: Summary: Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an 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.