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Edited version of private ruling
Authorisation Number: 1011636774858
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Ruling
Subject: Residency
Question 1
Am I an Australian resident for taxation purposes?
Answer: Yes
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
01 July 2009
Relevant facts
You arrived in Australia a few months into the financial year.
You held a temporary resident visa.
Before arriving in Australia, you had pre-arranged an employment contract with your employer.
You worked for your employer from a few days after your arrival in Australia to a few days before departing Australia. This has been your only employer in Australia.
You completed a tax file number declaration, stating that you were an Australian resident for tax purposes as you believed you met the criteria for residency.
You were in Australia for the purposes of work, not holidays or travel.
It was your intention to stay longer in Australia and continue to work for your employer, however you were offered an opportunity to transfer within the company to work in another country.
You reviewed Taxation Ruling TR 98/17 "Income tax: residency status of individuals entering Australia" and believe that your situation, employment and behaviour whilst working in Australia can be viewed as being a resident. You had a stable job, paid rent and superannuation contributions were paid into your nominated fund.
You departed Australia just prior to the end of the financial year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 6(1)
Income Tax Assessment Act 1997 Subsection 995-1(1)
Reasons for decision
Question 1
An Australian resident is defined in subsection 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) to be 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. These tests are:
1. The resides test
2. The domicile test
3. The 183 day test
4. The superannuation test
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.
The following factors were taken into account in determining your residency status:
You arrived in Australia on a particular date on a temporary visa.
You had pre-arranged employment before arriving in Australia.
You lived in one place and worked for one employer during your stay in Australia.
You were living in Australia for a period of more than six months.
You paid rent for your accommodation.
You had superannuation contributions made to your nominated fund.
You are deemed to be an Australian resident for taxation purposes from the date of your arrival in Australia to the date of departure from Australia, as your behaviour in Australia reflects a degree of continuity, routine or habit that is consistent with residing here.
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