Private ruling: Residency status – non resident
Date of advice: 8 May 2019
Published: July 2019
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX

Ruling: Q1: Are you a resident of Australia in respect of the period of time between 20XX and 20XX for the purposes of section 995-1(1) of the Income Assessment Act 1997 (ITAA 1997) and section 6(1) of the Income Assessment Act 1936 (ITAA 1936)? | A1: No. Given regard to your circumstances as a whole and a consideration of the residency tests, it is accepted that 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 and circumstances: You hold dual citizenship with Australia and Country A. You work for Telecommunications Company in Australia and have been assigned to the sister company overseas for a period of time. You departed Australia and intended to reside in Country B with your spouse for the entire time whilst on assignment. You have arranged for your adult children to reside in your main residence here in Australia whilst on assignment, although all the furniture was retained at the property the utility bills were transferred into your child’s name. You sold both your vehicles before departure and have arranged for your mail to be sent electronically and remaining mail was either directed to you mail box in Australia or redirected to your address overseas. You have notified the Australian Electoral Commission that you were relocating overseas and removed yourself from the electoral role. Your fitness membership has lapsed, private health cover has been suspended and you have notified your Australian bank of your overseas address. You will be keeping your Australian bank accounts open. You are not part of any Commonwealth Superannuation Schemes. Upon departure of Australia you indicated you were permanently departing Australia on your immigration departure cards. Whilst living overseas on assignment you signed a lease for a dwelling that you have fully furnished. This included set up of electricity, gas, water and internet accounts for the dwelling for the period. You took your personal belongings with you. Within the two year period you have returned to Australia for work related purposes only and primarily stayed at a hotel or temporary accommodation arrangements depending on where your work required you to be. You have only returned to your main residence in Australia on two occasions since being on assignment. Your wages are paid into an overseas bank account in local currency, you then transfer money into your Australian bank account for the purpose of paying off debts in Australia. All remaining funds remain in your overseas account cover day-today expenses as well the monthly lease payment your accommodation whilst on assignment. Whilst overseas you have joined numerous clubs and the membership fees are paid from your overseas bank account. After the assignment is complete you will returning to your main residence in Australia and fill a different role to support the Telecommunications Company you work for.

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