Private ruling: Temporary resident and foreign source income
Date of advice: 31 March 2026
Published: 9 June 2026
Ruling period: Income year ending 30 June 20XX | Income year ending 30 June 20XX | Income year ending 30 June 20XX | Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you a temporary resident as defined under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) for Australian tax purposes? | A1: Yes. Under subsection 995-1(1) of the ITAA 1997 you are a temporary resident because you hold a temporary resident special category visa granted under the Migration Act 1958 , you and your spouse are not Australian residents within the meaning of the Social Security Act 1991 because you and your spouse are not Australian citizens or hold permanent residency visas or protected special category visas that entitle you with a social security payment. | Q2: Are the proposed trust distributions from the X Trust, included in your assessable income under section 99B of the Income Tax Assessment Act 1936 (ITAA 1936)? | A2: No. As you are a temporary resident, section 99B will not apply to the proposed distributions from the X Family Trust . | Q3: If the answer to Question 2 is yes, are you entitled to the corpus reduction under subsection 99B(2) of the ITAA 1936? | A3: Not applicable. | Q4: If the answer to Question 2 is no, are the proposed trust distributions non-assessable non-exempt income (NANE)? | A4: Yes. In your case, you will receive distributions from a foreign trust that have a foreign source. Section 768-910 of the ITAA 1997 provides that if you satisfy the requirements of a temporary resident, your statutory income from a source other than an Australian source will be NANE when you derive it. Therefore, as you are a temporary resident, and the distributions have a foreign source, they will be NANE for you. Further information is available in the Explanatory Memorandum to the Tax Laws Amendment (2006 Measures No. 1) Bill 2006 at paragraph 1.23.

Relevant facts and circumstances: You and your spouse are citizens of Country A. You and your spouse hold Country A passports. You and your spouse were not in Australia on 26 February 2001 or for periods totalling 12 months during the two years immediately before that date. You and your spouse presented your Country A passports to a customs officer upon arrival in Australia. You and your spouse hold temporary visas in the form of Special Category Visa (SCV) and have never been granted social security payments on the basis of being protected SCV holders. You and your spouse are not permanent Australian visa holders or Australian citizens. You and your spouse are not a 'behaviour concern non-citizen' or a health concern non-citizen. You are proposed to receive trust distributions from the X Trust (the Trust). The Trust has X trustees, where they are Country A residents; none of them is an Australian resident for tax purposes. Your representative provided that the proposed trust distributions are sourced from • Country A dividends, • Country A interest, and • a portion of the original settlement sum of the Trust. Assumption You and your spouse hold and will continue to hold the SCVs and meet the temporary resident definition in the income years ending 30 June 20XX, 20XX, 20XX and 20XX. The 'portion of the original settlement sum of the Trust' does not comprise any Australian sourced income.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 995-1(1) | Income Tax Assessment Act 1936 section 99B | Income Tax Assessment Act 1936 section 768-910