Private ruling: Residency status
Date of advice: 17 April 2019
Published: June 2019
Ruling period: 1 July 2018 to 30 June 2019 | 1 July 2019 to 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: While employed overseas, am I a resident of Australia for tax purposes? | A1: Yes 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 satisfy the Domicile test for residency. Accordingly you are 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 are currently in Country A. You are currently on unpaid leave from your employment in Australia. You are intending to apply for more unpaid leave. You have a house to return to in Australia. Your stay in Country A is not intended to be permanent. You intend to return to Australia once your wife’s obligations are complete.

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