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This edited version has been archived due to the length of time since original publication.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 written advice

Authorisation Number: 1012939623353

Date of advice: 21 January 2016

Ruling

Subject: Residency and leaving Australia

Questions and answers:

Are you a resident of Australia for income tax purposes?

No.

This ruling applies for the following period:

Year ended 30 June 20ZZ

The scheme commenced on:

1 July 20YY

Relevant facts and circumstances:

You were born in Country A.

You are a citizen of Australia.

You left Australia in 20XX.

You left Australia to take up employment in Country B.

You entered Country B under a general migrant visa.

The visa allowed you to stay in Country B for three years.

The visa was provided by your employer.

You intend to reside in Country B permanently.

You notified your private health insurance provider of your moving overseas.

You have not lodged any Australian tax returns while you have been overseas.

You have been living in rented accommodation in Country B.

While living in Australia you stayed with relatives.

You held a bank account, credit card, superannuation and managed funds in Australia.

You have not made any investments in Australia while you have been overseas.

Your personal effects have been shipped to Country B.

You have acquired a bank account and a credit card while living in Country B.

You have not lodged foreign income tax returns while living overseas.

You have neither a spouse nor dependents.

You have no professional, social or sporting connections with Australia.

You have not established any professional, social or sporting connections in Country B.

You have had multiple employers in Country B.

You have been employed as a research fellow for more than two years.

You have not been employed by the Commonwealth of Australia nor have you contributed to the PSS or CSS Superannuation Schemes.

There is no employment position in Australia being held for you.

Relevant legislative provisions:

Income Tax Assessment Act 1997 Subsection 995-1(1)

Income Tax Assessment Act 1936 Subsection 6(1)

Reasons for decision

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. The tests are:

If any one of these tests is met, an individual will be a resident of Australia for taxation purposes.

Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency.

Accordingly you are not a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.

Withholding tax

You should notify all Australian financial institutions that you have investments with of your overseas address. They will take the appropriate tax out of your interest and dividends and remit to the ATO. This withholding tax will cover all tax liability on this income.

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