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Edited version of private ruling

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Ruling

Subject: Residency - working overseas

Are you an Australian resident for taxation purposes while working overseas?

No.

This ruling applies for the following period:

Year ending 30 June 2011

The scheme commences on:

1 July 2010

Relevant facts and circumstances

You are an Australian citizen.

You left Australia to take up a position as a locally engaged staff position with an Australian organisation in country X.

You have been in a de-facto relationship with someone in country X.

You lived in a rented accommodation in country X.

You have a property in Australia which is currently being rented by a friend.

On average, you return to Australia to visit family and friends and check on your house every few months.

You intend to return to Australia as soon as your partner's current work contract concludes. You will reside in your house in Australia.

Throughout your employment with the Australian Government organisation, your employer has contributed to your Australian superannuation account.

You state that you are also a member of the Government superannuation scheme but this account is no longer active. You are not able to contribute to the Government superannuation scheme anymore.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 6(1)

Reasons for decision

The terms 'resident' and 'resident of Australia' are defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The definition provides a series of tests to ascertain whether a person is a resident of Australia. These tests are:

Two of the tests that are relevant to your circumstance depend on whether or not you could be considered to be residing permanently or for a considerable period of time in country X, such that it is your settled or usual place of abode.

You have lived and worked in country X and intend to remain working there for a few years. Although you maintain an association with Australia through your family and investments, your associations with country X are more significant as you will be residing and working full time there. Therefore, the Commissioner considers that you have established a permanent or long-term residence outside of Australia.

The other residency test that is potentially relevant to your circumstances involves membership of a superannuation scheme set up for employees of the Commonwealth.

You state that you were a member of the Government superannuation scheme but this account is no longer active. As you are no longer a member of the fund, you will not be treated as a resident under this test.

In view of the above, it has been concluded that you will not be a resident of Australia for taxation purposes for the 2010-11 income year.

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