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Edited version of private advice
Authorisation Number: 1051578041116
Date of advice: 10 September 2019
Ruling
Subject: Temporary residency and foreign source income
Question 1
Are you a temporary Australian resident for taxation purposes?
Answer
Yes
Having considered all of the facts, circumstances and relevant legislation, the Commissioner considers you meet the definition of a temporary resident under section 995-1 of the ITAA 1997. More information about temporary residency can be found by searching for QC 18869 on ato.gov.au
Question 2
Is the rental income and the capital gain on the sale of your overseas real property taxable in Australia?
Answer
No
As you are a temporary resident of Australia the income from your overseas investment property is not assessable income and you do not pay capital gains tax (CGT) in Australia on the sale of your overseas property. More information can be found by searching QC 33208 and QC 18869 on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 2017
The scheme commences on:
1 July 2008
Relevant facts and circumstances
You and your spouse are citizens of country A.
You and your spouse moved to Australia permanently on Special Category Visas (SCV).
You are an Australia resident for tax purposes.
You purchased an investment property in Country A.
You sold the investment property in Country A.
You and your spouse have never applied for Australian citizenship.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6(1)
Income Tax Assessment Act 1997 subsection 6-5(2)
Income Tax Assessment Act 1997 subsection 6-10(4)
Income Tax Assessment Act 1997 section 768-910
Income Tax Assessment Act 1997 section 995-1
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