Private ruling: Residency
Published: January 2013
Ruling period: Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2012

Ruling: Question and answer: | Are you a resident of Australia for income tax purposes from the date you depart Australia? | No.

Relevant facts and circumstances: Your country of origin is country X. You are a citizen of Australia and country X. You are taking up an employment contract in a foreign country. You will enter the foreign country with a business visa. Your employment contract is initially for one year; however you consider that it may be extended for two to five years or even indefinitely. Your employment contract stipulates that you will work for 11 months of the year and have one months leave. Your employment contract provides you with one return air flight to Australia each 12 months. You will lease accommodation in the foreign country on an annual basis. You intend to work in the foreign country indefinitely and do not intend to return to Australia to live. When your employment contract finishes you intend to either return to country X or find employment elsewhere. You have a spouse and children in Australia who live in a residential house you own. You and your spouse have separated and none of your family will accompany you overseas. Your family will continue living in the family home and your spouse. You will provide for your children's education and pay the house mortgage. You will no longer have a place of residence in Australia. You intend to meet your children in Australia or overseas in the future. You have never been employed by the Australian Commonwealth government.


Reasons for decision: Summary: Generally where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status. Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au. Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes.

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.