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Edited version of private advice

Authorisation Number: 1052228482608

Date of advice: 4 March 2024

Ruling

Subject: Residency of Australia for taxation purposes

Question

Are you a resident of Australia for taxation purposes from the relevant date?

Answer

No.

This ruling applies for the following period:

Year ended 30 June 2022

Year ended 30 June 2023

Year ending 30 June 2024

Year ending 30 June 2025

The scheme commenced on:

1 July 2021

Relevant facts and circumstances

You were born in Australia.

You are a citizen of Australia.

You left Australia for an employment contract in Country Z.

You have a Work visa to enter Country Z.

You work for Employer Z in Country Z.

Your employment contract was extended after the initial period.

You are confident that the contract will be extended when the current contract expires.

You rent an apartment in City Z in your own name.

Your employer does not contribute to any of the costs associated with the rental property.

You purchased items for the property.

You have a group of colleagues and friends that you catchup with regularly at City Z. You often meet up at local pubs or restaurants.

You have been lodging tax returns with the Country Z revenue authority as a tax resident in that country.

You don't own any real property in Australia.

You don't have a car in Australia. You have a motorcycle in Australia, which is for sale.

You retain a mobile phone number in Australia for sentimental reasons, you use that number when you're in Australia for holiday as well.

You don't have a spouse. Your adult children live in Australia along with your parent and sibling.

You have bank accounts in Country Z, bank accounts in Australia. The bank accounts in Australia are kept for share investment and money transfers.

You have a credit card which you use while you are overseas.

You have investments in listed shares in Australia.

You have moved some of your personal belongings to City Z. The rest are stored at your parent's house in Australia.

You visit your family in Australia a couple of times a year, a few weeks per visit.

During your visits back to Australia you do not engage in any business or work activity.

You don't have any business or employment ties in Australia.

You don't maintain any membership or affiliation in Australia.

You do not have private health insurance in Australia.

Employer Z has international health coverage, including portion in Australia

You have removed your name from the Australian Electoral roll.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

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

Reasons for decision

For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests.

•                    The resides test (otherwise known as the ordinary concepts test)

•                    The domicile test

•                    The 183 day test

•                    The Commonwealth superannuation fund test

We have considered your circumstances, and conclude that you are not a resident of Australia for tax purposes for the relevant period as follows:

•                    You are not a resident of Australia according to the resides test.

•                    You do not meet the domicile test. Although your domicile is in Australia, the Commissioner is satisfied that your permanent place of abode is outside Australia.

•                    You do not meet the 183-day test.

•                    You do not intend on being in Australia for more than 183 days in any of the financial years.

•                    You do not fulfil the requirements of the Commonwealth superannuation fund test.

In summary, you are not a resident of Australia for tax purposes for the relevant period.

For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals.

You are not eligible to contribute to the PSS or the CSS Commonwealth super funds.

 

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