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This edited version has been archived due to the length of time since original publication.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

Authorisation Number: 1051525746475

Date of advice: 03 June 2019

Ruling

Subject: Residency

Question

Are you a resident of Australia for income tax purposes from the date of your departure from Australia?

Answer

No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are an Australian citizen.

In May 20XX you signed an employment agreement with Company A, a company registered in Country A.

The employment terms are on the Country A local terms and the duration of employment is for an ongoing term and not a fixed term but either party may terminate the employment upon giving three months' notice.

Your place of work is in Country A and you are paid in local Country A currency.

You ceased employment with your previous Australian employer.

Due to the HR Policy in place you will continue to receive contributions to your Australian superannuation fund.

If your employment in Country A is terminated for any reason you do not have a job to return to in Australia.

You relocated to Country A on a one way ticket.

Your outgoing passenger card indicated that you were leaving Australia permanently.

Prior to your departure you:

·   removed your name from all the accounts you held;

·   notified the Australian Electoral Commission to remove you from the electoral roll;

·   notified your bank and Medicare of your departure;

·   cancelled all social and sporting memberships, including cancellation of your gym membership;

·   suspended your private health insurance, pending a planned laser eye surgery scheduled in Perth, following the surgery you cancelled your private health insurance;

·   sold your motor vehicle.

Your bank account remained open as you are a joint owner in two properties that are rented out to third parties on a rolling 12 month lease. You intend to sell the properties as soon as the market improves to recover the cost of your capital investment.

You shipped a sea container to Country A taking with you all of your personal belongings, furniture, kitchenware and sporting equipment.

Upon arrival in Country A you purchased a new television.

You have not left any personal belongings in Australia.

You signed a long term lease upon arrival in Country A for a term of 12 months renewable on an annual basis. You pay the rent yourself. You renewed the lease for a further 12 months.

You applied for a Resident Visa and a Resident ID card, valid for three years and renewed every three years.

You obtained a Country A driver's licence.

You opened a bank account in Country A to have your salary deposited. You also opened a credit card account for living expenses.

You obtained local private health insurance in Country A.

You signed up for a two year subscription for internet and entertainment.

You play social touch rugby on a weekly basis and conduct boxing sessions with your friends regularly.

You have returned to Australia on three occasions for short periods since departing for personal reasons.

You do not have any intention of returning to live in Australia permanently.

You do not hold a position with the Commonwealth Government of Australia nor are you a member or eligible employee of a Commonwealth Superannuation Scheme.

Relevant legislative provisions

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

Income Tax Assessment Act 1936 subsection 6(1)

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