Edited version of private advice

Authorisation Number: 1051531393773

Date of advice: 28 June 2019

Ruling

Subject: Residency

Question

Are you an Australian resident for income tax purposes for the income tax year ending 30 June 20XX?

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 period(s)

Year ended 30 June 20XX.

The scheme commences on

1 July 20XX

Relevant facts and circumstances

You were born in Australia and are an Australian citizen.

You lived with your parents prior to leaving Australia.

You travelled to the Country B on a J1 visa.

You loved your snow sports and this love grew while in Country B therefore you decided to move there indefinitely.

You organised a job with Employer A in Country B.

Employer A is approximately one hour from the snow fields.

You returned to Australia to complete the final portion of your E3 visa.

While back in Australia you disposed of your motor vehicle, closed all Australian bank accounts and transferred all funds to your Country B bank account.

Your parents removed you from their family private health insurance policy.

Sometime later you departed Australia.

On departing Australia you held an E3 Specialty Occupation Visa.

This visa allowed you to stay in Country B as long as you continued to meet the requirements of your visa.

You planned to work in Country B indefinitely under your visa requirements.

On the Australian Immigration Outgoing Card you stated the reason for departing Australia was Employment.

Soon after departing Australia you began working at Employer A in Country B.

For the time you were employed with Employer A you lived at the one address in Apartment C.

While in Country B you completed the following:

·         purchased comprehensive private health insurance in that country through the Hospital;

·         lodged income tax return/s;

·         opened a bank account;

·         purchased a mobile phone contract; and

·         purchased a motor vehicle.

You also developed a close knit group of friends.

For the time you were in Country B you did not:

·         receive any income from Australian sources;

·         have a job waiting for you on return to Australia; and

·         have any investments in Australia.

You did not advise:

·         Medicare to remove you name from their records

While overseas one of your parents had a health scare and both of your grandparents became unwell.

Sometime later you applied for numerous jobs.

As a result of the pending end of your visa the Hospital hired another staff member to fulfil your role.

You were unsuccessful in gaining other employment as all potential employers were unwilling or unable to adhere to the E3 visa requirements.

You resigned from your employment in Country B.

Once your employment ended and your visa was no longer valid you had 10 days to depart Country B.

21 months after entering Country B on an E3 visa you departed Country B and returned to Australia.

On returning to Australia you had to move back in with your parents.

Relevant legislative provisions

Income Tax Assessment Act 1936 sub-section 6(1)

Income Tax Assessment Act 1997 sub-section 995-1(1)

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