Private ruling: Residence - departing Australia
Date of advice: 31 October 2017
Published: March 2018
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020 | Year ended 30 June 2021
Date scheme commenced: 1 July 2016

Ruling: Questions and answers: | Are you a resident of Australia for income tax purposes? | No.

Relevant facts and circumstances: You were born outside Australia. You are a dual citizen of Australia and a Country X. You came to Australia when you were a child and became and Australian citizen thereafter. You left Australia in the financial year ended 30 June 2015. You are now residing in the Country X location permanently as a citizen. You intend to remain in the Country X permanently. You have no plans to return to Australia. In the future you plan to visit Australia once a year. You have since returned to Australia for a few short periods Since leaving Australia you have visited regional destinations for periods of no more than a week on less than 10 occasions. You notified the Australian Electoral Commission of your departure. You advised your private health insurance provider to suspend or cancel your policy. When completing your incoming passenger card you indicated that you were a Visitor or temporary entrant and provided your father’s address on the passenger card. You reside in a family owned home in Country X. When you were living in Australia you resided in your family home. You retain a bank account and superannuation in Australia. You notified the Australian bank of your address in Country X. You have opened bank accounts in Country X. You took the vast majority of your personal effects with you to Country X, you left some books in Australia. You have lodged tax returns in 2015 and 2016 as a citizen of the Country X through their tax authority. You are single with no dependents. Your parents remained in Australia. You have no professional, social or sporting connection in Australia or Country X. You have obtained a driver’s licence in Country X and a professional qualification. You have a permanent full-time employment position in Country X. You have no position or job being held for you in Australia. You have never been an employee of the Commonwealth of Australia or a member of a Commonwealth employee defined benefit superannuation 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.