| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1012744697692
Ruling
Subject: Temporary Residency
1. Are you a temporary resident of Australia for income tax purposes?
Yes.
2. Is your income from overseas assessable in Australia?
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You arrived in Australia from Country A.
You presented your Country A passport and entered Australia on the special category visa subclass 444.
You are not an Australian resident within the meaning of the Social Security Act 1991.
You do not have a spouse.
You earned bank interest from Country A.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1).
Income Tax Assessment Act 1997 Section 768-910.
Reasons for decision
From 1 July 2006, temporary residents will not have to pay tax in Australia on most of their foreign income if they:
• are an individual who is a resident of Australia for tax purposes, and
• satisfy the requirements of being a temporary resident.
Under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997), a taxpayer is a temporary resident if:
• they hold a temporary visa granted under the Migration Act 1958
• they are not an Australian resident within the meaning of the Social Security Act 1991, and
• their spouse (if applicable) is not an Australian resident within the meaning of the Social Security Act 1991.
You are a temporary resident because:
• you hold a temporary resident visa subclass 444 (special category visa) granted under the Migration Act 1958
• you are not an Australian resident within the meaning of the Social Security Act 1991 because you are not an Australian citizen or hold a permanent residency visa, and
• you do not have a spouse.
Section 768-910 of the ITAA 1997 provides that ordinary income derived from a foreign source; excluding employment related income and capital gains on shares and rights acquired under employee share schemes, is exempt from income tax in Australia when derived by a temporary resident of Australia.
Your foreign source income comprising of interest income is therefore exempt from income tax in Australia as you will be a temporary resident of Australia when you derive it.
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).
