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Edited version of private ruling

Authorisation Number: 1011494387853

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Ruling

Subject: Your residency status

Are you an Australian resident for tax purposes from the date of your arrival?

Yes.

This ruling applies for the following period

Year ended 30 June 2010

The scheme commenced on

1 July 2009

Relevant facts and circumstances

You are an Australian citizen.

You have been going to and from Country A for the past few years.

The main reason for your trips to Country A was to look for warm weather to alleviate medical pains and to sort out family matters.

You never established residency in Country A (where you spent most of your time).

You left your work in Australia due to your health problems.

You rented out your unit in Australia. This unit was temporarily leased through a real estate agent.

The lease on your apartment was terminated to prepare for your eventual residence.

You returned back to live in Australia for good and have since lived in that unit.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 995-1(1)

Income Tax Assessment Act 1936 subsection 6(1)

Reasons for decision

An Australian resident is defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to be a person who is 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. These tests are:

The primary test for deciding the residency status of an individual is whether the individual resides in Australia according to the ordinary meaning of the word resides. If the primary test is satisfied the remaining three tests do not need to be considered as residency for Australian tax purposes has been established.

Taxation Ruling TR 98/17 considers the residency status of individuals entering Australia and states that the period of physical presence or length of time in Australia is not, by itself, decisive when determining whether an individual resides here.

However, an individual's behaviour over the time spent in Australia may reflect a degree of continuity, routine or habit that is consistent with residing here.

In your case, it is considered that you are an Australian resident for tax purposes under the resides test for the following reasons:

Based on the information you have provided, it is considered that you are a resident of Australia for tax purposes from the date of your arrival as your behaviour over the time spent in Australia reflects a degree of continuity, routine or habit that is consistent with residing here.

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