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Ruling

Subject: Residency

Question 1

Are you an Australian resident for income tax purposes?

Answer

Yes.

This ruling applies for the following periods:

1 July 2012 - 30 June 2013

The scheme commences on:

1 July 2012

Relevant facts and circumstances

You are a citizen of Country B.

You have been living in Country A since early-mid 2012, and expect to live there until at least early-mid 2015.

You are in Country A accompanying your spouse who is working there for several years.

You have a visa issued by the Country A Government.

You are living with your spouse in Country A in a house rented for you by your spouse's employer.

You expect to return to Australia once during your time in Country A.

You intend to return to Australia at the conclusion of your spouse's work in Country A.

You have bank accounts in Country A and Country B.

You have several bank accounts in Australia.

You own a house in Australia as a join tenant with your spouse.

You do not have an employment contract in Country A.

You have no immediate family members in Australia.

You have a range of friends and acquaintances in Australia and Country A.

Your spouse is a member of the PSS (Public Sector Superannuation Scheme).

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 995-1(1).

Income Tax Assessment Act 1936 Subsection 6(1).

Reasons for decision

Residency for taxation purposes - general

Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as 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:

If any one of these tests is met, an individual will be a resident of Australia for taxation purposes. Normally, the resides test is the primary test for determining the residency status of an individual. If residency is established under the resides test, the remaining three tests do not need to be considered. If residency is not established under the resides test, an individual will still be a resident of Australia for taxation purposes if they meet the conditions of one of the other three tests.

In your situation, because your spouse is a member of the PSS, we have only considered the superannuation test.

The superannuation test

Under this test, an individual will be considered a resident of Australia for taxation purposes if:

In your case, your spouse is a member of the PSS. Accordingly, you are a resident of Australia for taxation purposes under this test.

Conclusion - your residency status

You are a resident of Australia under the superannuation test of residency outlined in subsection 6(1) of the ITAA 1936 and subsection 995-1(1) of the ITAA 1997 in the 2012-13 income tax year.

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