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This edited version has been archived due to the length of time since original publication.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: 1051264238489

Date of advice: 7 August 2017

Ruling

Subject: Residency

Question

Are you a resident of Australia for income tax purposes?

Answer:

No.

This ruling applies for the following period:

Year ended 30 June 2014

Year ended 30 June 2015

Year ended 30 June 2016

Year ended 30 June 2017

Year ending 30 June 2018

Year ending 30 June 2019

Year ending 30 June 2020

The scheme commenced on:

DDMMYY

Relevant facts and circumstances:

You were born in Australia.

You are a citizen of Australia.

Prior to mid 201X you lived and worked in Australia.

In mid 201X you moved to country Y for work purposes and to live.

You have a visa to work in the overseas country.

The visa has been extended for the next few years.

You have returned to Australia three times since leaving Australia in for short visits, these visits did not exceed 183 days.

You stayed either with friends, hotels or family on these visits.

You do not intend on returning to Australia in the 2017 income year.

You are single.

You have visited other countries as a tourist.

You have taken steps to obtain permanent residency in Country Y.

You do not hold any real property in the world.

You live in rented accommodation in Country Y.

You have accumulated household items in Country Y.

You have the following assets in Australia:

You have a postal box, mobile phone plan and health fund in Australia.

You sold or disposed of all your belongings in Australia before leaving for Country Y.

You have the following assets in country Y:

You pay tax in country Y.

You are not eligible to contribute to the PSS or the CSS super fund.

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.

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).