| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011737171159
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Residency for tax purposes
Questions:
1. Are you a temporary resident of Australia for tax purposes?
Answer: Yes.
2. Is the salary and wages income you earn from Organisation Y taxable in Australia?
Answer: Yes.
This ruling applies for the following periods:
Year ended 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
The scheme commenced on:
1 September 2010
Relevant facts and circumstances
You are a citizen of Country X.
You are employed on a fixed-term contract at Organisation Y.
You have a temporary residency visa (sub class 457) which expires in August 2014.
You are currently living in Australia with your spouse and children.
Your spouse also has a temporary residency visa (sub class 457). Your spouse is not an Australian resident citizen or permanent resident of Australia and does not hold a protected special category visa.
You intend to reside in Australia until November 2012.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1).
Migration Act 1958
Social Security Act 1991
Reasons for decision
A temporary resident as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) is a person:
· who holds a temporary visa under the Migration Act 1958, and
· who is not an Australian resident within the meaning of the Social Security Act 1991, and
· whose spouse is not an Australian resident within the meaning of the Social Security Act 1991.
A person is a resident within the meaning of the Social Security Act 1991 if they are an Australian resident citizen, permanent resident of Australia, or they hold a protected special category visa.
In your case, you hold a temporary visa under the Migration Act 1958. Neither you, nor your spouse, are Australian residents within the meaning of the Social Security Act 1991.
Therefore, you meet the definition of temporary resident.
As you are a temporary resident of Australia for tax purposes, the salary you receive from working at Organisation Y is assessable in Australia.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
