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This edited version has been archived due to the length of time since original publication.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

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Edited version of your written advice

Authorisation Number: 1051309166646

Date of advice: 17 November 2017

Ruling

Subject: Residency for Australian taxation purposes

Question

Are you a resident for taxation purposes?

Answer

No.

This ruling applies for the following period:

Year ending 30 June 2017

Year ending 30 June 2018

Year ending 30 June 2019

Year ending 30 June 2020

Year ending 30 June 2021

The scheme commences on:

1 July 2016

Relevant facts and circumstances

You currently own a car and motorcycle in Australia which you are selling.

You own a unit in Australia which you are renting out.

You have bank accounts in Australia which are linked to the mortgage of the unit.

Your immediate family live in Australia and you have extended family in Country A.

You have spent the majority of the 2017 financial year living in Country B.

You have a residency visa for Country B which was initially issued in 2011.

You have a current international drivers licence.

You intend to live in Country B for the foreseeable future.

You have established ties to the community through gym membership and sports teams which play each week.

You live in accommodation supplied by your employer.

You have a permanent position working in Country B and your employer pays taxes in Country B.

If your current employment ceases you would rent a house and seek alternative employment in Country B.

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.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 6(1)

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

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