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This edited version has been archived due to the length of time since original publication.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: 1051645599752

Date of advice: 10 March 2020

Ruling

Subject: Residency - leaving Australia to work and live overseas permanently

Question

Are you a resident of Australia for taxation purposes?

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 from when you left to work overseas; you are now living your life overseas. It is accepted that your place of abode is in XXXX. Your accommodation arrangements, work, social and sporting commitments demonstrate you reside in XXXX.

This ruling applies for the following periods:

1 July XXXX to 30 June XXXX

The scheme commences on:

1 July XXX

Relevant facts and circumstances

You departed Australia.

Your country of origin is Australia and you are an Australian citizen.

You left Australia upon accepting a job offer overseas.

You have supplied a copy of your visa permit and employment contracts for Country Z. The permit is renewed on XXXX and allows you to live overseas.

You have paid tax since you commenced work in the XX

The decision for you to relocate and make your home indefinitely outside Australia was made from the time of your departure.

You commenced divorce proceedings from your spouse in Australia over a year after leaving. You stored your personal belongings at your child's house.

You have lived in the same building since arrival in Country Z. You hold assets in Country Z including:

You maintain an investment property that has been tenanted since it was purchased. The only income you receive from Australia is from the rental property.

You advised your financial institutions that you were moving overseas before you left. A bank account is maintained in Australia, which is used for rental purposes. You have removed yourself from the Australian Electoral Roll and suspended your Australian private health insurance.

You do not have an employment position being held for you in Australia.

You are not and have not been a Commonwealth Government of Australia employee.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

Income Tax Assessment Act 1936 subsection 6(1)

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

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