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This edited version has been archived due to the length of time since original publication.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

Authorisation Number: 1051541344795

Date of advice: 4 July 2019

Ruling

Subject: Residency - Departing Australia

Question

Are you an Australian resident for income tax purposes?

Answer

Yes.

Given regard to your circumstances as a whole and a consideration of the relevant residency tests, you are 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 2019

Year ended 30 June 2020

Year ended 30 June 2021

The scheme commences on:

1 July 2018

Relevant facts and circumstances

In 20XY you, your spouse and children departed Australia for Country X.

Prior to 20XY, you have been residing in Australia since birth.

You are an Australian citizen.

Your children were born in Australia.

Your parent and siblings were born in Australia.

Your objective was for you and your children to experience living overseas in a non-English speaking country.

Your spouse has been granted a Country X visa which allows you and your family to stay in Country X for three years.

The visa can be renewed for another three years.

Due to a condition of the visa, your spouse has completed a statutory declaration stating that your family will return to Australia within six years.

Your children are on the waitlist for three schools near your home in Australia.

In 20XY your home in Australia was rented out on a 12 month lease.

All your personal items are in storage, some furniture items are in the home.

You did not bring any personal items to Country X other than what could be brought on the airplane.

In 20XY you signed a 12 month lease for a two bedroom flat in Country X.

Under the terms of the lease, you can vacate with no penalties by giving one month notice.

You enrolled your children in the local primary school in 20XX.

You and your family travel extensively to nearby countries during school holidays.

All your income is sourced in Australia.

You are a co-director of two Australian companies.

You have approximately 10 bank accounts in Australia.

You own Australian Stock Exchange listed shares.

You own a motorbike in Australia.

All your friends are based in Australia.

You have one bank account in Country X.

All the mail to your Australian home is being redirected to your spouse's sibling in Australia.

You are not employed in Country X.

You own a car in Country X.

You have advised the Australian Electoral Commission that you will be overseas for a few years.

You purchased a percentage shareholding of an existing Australian company.

School enrolment has been confirmed in your selected Australian school and a deposit has been paid.

You moved to a different location within Country X in 20XX.

You and your spouse are considering buying an investment property in Country X.

Your property in Australia is unlikely to be rented after 20XX and will be available to you upon your return.

You intend to return to Australia to be back in time for school enrolment for the 20XX calendar year.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1),

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

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