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This edited version has been archived due to the length of time since original publication.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 your private ruling

Authorisation Number: 1012563355775

Ruling

Subject: Residency

Question 1

Are you an Australian resident for taxation purposes for the financial year ended 30 June 2013?

Answer

No

This ruling applies for the following period:

Year ended 30 June 2013

The scheme commences on:

1 July 2012

Relevant facts and circumstances

You are a citizen of Australia.

You do not have permanent residency of any other country.

Your spouse was a senior sales executive of a Company in Australia.

Your spouse left Australia in the 20XX financial year to work for the same Company in an overseas company.

You left Australia with your children a few months later to join your spouse.

You entered the country as a dependent of your spouse.

Your spouse's current visa is a Temporary work visa sponsored by another employer.

Your spouse's employers did not provide accommodation.

You intend to continue to live in the overseas country in the short to medium term. You made this decision soon after your spouse's first posting in the overseas country.

You returned to Australia for 10 days for holidays.

In the overseas country you purchased a home in 20XX.

You sold this property in 20YY.

You have purchased another property in the overseas country.

In Australia you had a property.

You sold this property in 20YY. You were unable to sell this property straightaway because you wanted to be sure you were comfortable living in the overseas country and obtained a less restrictive visa.

You and your family are members of a sporting club in the overseas country and your child has joined a specific sporting class.

You suspended your health insurance.

In the Australian immigration outgoing passenger card your reason for travel was business.

You and your spouse were not employed by the Commonwealth of Australia.

Reasons for decision

Generally where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. 

The terms 'resident' and 'resident of Australia', in regard to an individual, are defined within the tax provisions and provides four tests to ascertain the residency status.

Relevant to your situation are the first two tests which are examined in Taxation Ruling IT 2650 Income Tax: Residency - permanent place of abode outside Australia, a copy of which is available from www.ato.gov.au.

Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes.

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