Edited version of private advice

Authorisation Number: 1052364394081

Date of advice: 08 April 2025

Ruling

Subject: Residency

Question

Were you a resident of Australia for taxation purposes from the date of your departure to 30 June 20XX?

Answer

No.

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 were not a resident of Australia for the period from your departure to 30 June 20XX, as follows:

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

•                You do not meet the domicile test because while 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 because you were not in Australia for 183 days or more during the 20XX income year.

•                You do not fulfill the requirements of the Commonwealth Superannuation test.

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

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX August 20XX

Relevant facts and circumstances

You were born in City A, in Country A.

On or around December 20XX you migrated to Australia.

On XX May 20XX you married your spouse, who was born in Australia and whose parents are in Australia.

Shortly after, you became a citizen of Australia.

You are a dual citizen of Australia and Country A and hold dual passports.

On XX May 20XX, you and your spouse purchased a property in City B Australia (the Property) which is where you and your family lived.

You and your spouse have two children, child A and child B who:

•                Are both Australian and Country A citizens

•                Each hold dual passports; and

•                Both attended primary school in Australia.

You were employed by Employer A for whom you travelled extensively overseas on a regular basis to build up their client base in Country B and surrounding countries.

You and your spouse contemplated the intention to move to Country B over a six-to-twelve-month period due to the significant planning involved.

Your plan was to move to Country B for work to take advantage of being on the ground overseas. Country B is also a mid-point between Australia and Country A so that you and your spouse could either go back to Australia as your children approach their upper secondary schooling, with the alternative being to go to Country A. The decision will depend on your children's progression and development as they mature.

On XX May 20XX you entered a lease agreement for a property (The Villa) in Country B, with exclusive possession for 12 months. The Villa was leased unfurnished with the exception of televisions, sound system, kitchen appliances, barbeque and golf buggy.

On XX May 20XX an application was lodged with a school in Country B in relation to your children's enrolment.

On XX August 20XX your children were offered places at the school for the relevant academic year which commenced on XX August 20XX.

On (or around) XX August 20XX, you and your family moved out of the Property and departed Australia to travel to Country B.

Period Overseas

On XX September 20XX, you ceased your employment with Employer A.

On XX September 20XX you entered an employment contract with an overseas employer (Employer B).

On XX September 20XX, the relevant authority issued a Resident Identity Card to you. The expiry date of the card is XX September 20XX, with your employer listed as being Employer B.

On XX September 20XX, you were issued with a labour card which lists your name, your role being a manager for Employer B, with an expiry date of XX September 20XX.

Your family members' visas are tied to your employment in Country B.

After your arrival in Country B, you and your family stayed in two separate serviced apartments, for two weeks in each respective apartment, while you were waiting for your personal items and household effects to arrive from Australia.

You and your family moved into the Villa, initially using leased furniture until your personal items and household effects arrived from Australia several weeks after your arrival in Country B.

Your children are currently enrolled at a school in Country B.

They will continue to be enrolled at the overseas school until the end of the ruling period.

You and your family members participate in the following activities in Country B:

•                Child A participates in go-karting, having acquired a kart drivers licence that is valid for six months past the period of this ruling.

•                Child B has taken up horse riding.

•                Both children have extracurricular activities with their school; and

•                You and your spouse have joined a gym.

You and your spouse:

•                Have both obtained drivers licenses in Country B; and

•                Manage your investments through the same bank.

You have taken short holidays not exceeding the amount permitted by your employment contract (five weeks per year), in numerous countries after your arrival in Country B:

On XX July 20XX, you entered a lease for an apartment overseas, for a 12 month period.

Your employment and living arrangements will continue to remain the same until the end of the ruling period.

Australia connections

Your and your family's personal items and household effects have either:

•                Been shipped to Country B to be used as part of your furnishings and contents in your overseas accommodation, such as beds, smaller furniture and personal possessions

•                Been put into storage, being the larger items

•                Been sold; or

•                Left at the Property, such as custom furniture, which is included with the Property when it is leased.

Prior to, or around the time you departed Australia, you sold the family cars, a caravan and jet ski.

The Property was rented to your spouse's parents under a commercial 12-month lease through a rental agent.

Your family dog is being cared for by your spouse's parents at the Property. It could not accompany the family overseas due to the heat.

You and your spouse are the directors of a Trustee Company which is the trustee of a family trust (the Trust). It is anticipated that either:

•                The Trust will vest and the Trustee Company will be deregistered; or

•                The Trust's activities will be reduced, and an Australian resident director will be appointed as the director while you and your spouse are in Dubai.

You held Australian listed shares when you departed Australia, which are progressively being sold with the sale proceeds being deposited into your Investment Account.

You had elected to defer any capital gain arising as a result of the capital gains tax even occurring when you departed Australia. You will lodge non-resident income tax returns to report any capital gain or loss on the sale of your Australian listed shares.

You receive dividends in relation to your shares and rental income from the Property.

You and your spouse transferred your investments to an overseas bank.

You have one bank account in Australia that you keep to service the Property.

You and your spouse will allow your Australian licenses to lapse, and will not renew them while you are in

Country B.

You have ongoing professional communications with Employer A.

You and your spouse have superannuation funds in Australia.

You and your spouse had advised the following that you were leaving Australia:

•                The Australian Electoral Office to have your names removed from the electoral roll

•                The bank with whom the Australian bank account is held

•                The relevant share registry in relation to shares you held; and

•                Medicare.

Neither you nor your spouse were Commonwealth Government of Australia employees, nor are either of you eligible employees for the purposes of the Superannuation Act 1976 (Cth).

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

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

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