Private ruling: Residency for tax purposes
Published: November 2012
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Questions and answers | Are you a resident of Australia for taxation purposes? | No. | Are you required to declare your overseas income in an Australian tax return? | No.

Relevant facts and circumstances: You are an Australian citizen. You left to live and work overseas a number of years ago. You have a work contract overseas. You will seek further employment overseas when this contract ends. Your spouse and child live with you overseas. They are both overseas citizens. You have a residency permit for the overseas country you are living in. You have no intention on returning to Australia in the near future. You have no property or assets in Australia other than a bank account.

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

Reasons for decision: Summary: To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income. The definition of 'resident' within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are: · the resides test · the domicile test · the 183 day test · the superannuation test You do not meet any of the above tests and are not considered a resident of Australia for tax purposes. As a non-resident of Australia for taxation purposes you are not required to declare income derived overseas in your Australian tax return. The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au .

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.