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This edited version has been archived due to the length of time since original publication.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: 1051445829555

Date of advice: 24 October 2018

Ruling

Subject: Residency for taxation purposes

Question

Will you be considered a non-resident of Australia after you moved to Country B late 20XX?

Answer

Yes

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.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You were born in Country A.

You became an Australian citizen in 19XX.

You left Australia and moved to Country B in late 20XX.

You have informed Medicare of your departure and suspended your private health insurance.

You advised your banks that you were temporarily moving to Country B.

You moved to Country B to begin a job.

Your spouse is living in Country B with you.

You do not intend to return to Australia within the next two to three years.

You have purchased your own home in Country B.

You have two properties in Australia which you rent out.

You have two bank accounts in Australia and one in Country B.

You have furniture and household goods in Australia and Country B.

You were previously an eligible member of the Commonwealth Superannuation Scheme (CSS) until you retired from government service in 20XX.

You do not have a job or position being held for you in Australia.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 6(1)

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

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