Edited version of private advice

Authorisation Number: 1052378051133

Date of advice: 15 April 2025

Ruling

Subject: Residency

Question 1

Are you a resident of Australia for tax purposes as defined by subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) from X XX 20XX?

Answer 1

No.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commenced on:

XX XX 20XX

Relevant facts and circumstances

You are an Australian citizen. Your spouse is also an Australian citizen.

In XX 20XX, your spouse was offered a job overseas and signed a contract with a foreign company in Country B for X years.

On XX XX 20XX, your spouse left Australia.

On XX XX 20XX, you and your dependent child joined your spouse in Country B.

Your intentions are to remain in Country B for the duration of your spouse's employment, and to consider your options for temporary or permanent residency thereafter. Since departing Australia and for the foreseeable future you have had no intentions to return to Australia.

Accommodation and assets

Between XX XX and XX XX 20XX, you made a round trip from Country B to Australia to inspect bathroom repairs and clear your residence so that it could be rented out as soon as possible.

On XX XX 20XX your spouse advertised their property (in which you resided as a family) for rent.

On XX XX 20XX your spouse signed an agreement with Real Estate Agency Z to take over the process.

In XX the agency found tenants for the property; they moved in on XX XX 20XX.

The property was leased by the same agency under another X-month lease in XX 20XX.

You sold all your furniture and personal belongings and completed bathroom repairs to make it possible to rent the property upon your departure.

Between XX XX and XX XX 20XX, you rented short-term accommodation in Country B.

From XX 20XX you have resided in long-term accommodation in Country B.

You have one bank account in Country B.

You have bank accounts in Australia, where you keep your savings.

You briefly returned to Australia in 20XX and in 20XX to visit your extended family.

You spent less than 183 days in Australia during the 20XX financial year.

Income and employment

You were previously employed by Company A (your employer) as a director.

You advised your employer prior to leaving Australia that you were going to remain in Country B indefinitely from XX 20XX.

You resigned from the role in XX 20XX with an effective resignation date of XX XX 20XX.

You don't receive any income from sources outside of Australia.

Neither you nor your spouse are a Commonwealth of Australia Government employee for superannuation purposes.

You are not a member of the Public Sector Superannuation Scheme (PSS) which was established under the Superannuation Act 1990.

You aren't an eligible employee in respect of the Commonwealth Superannuation Scheme (CSS) which was established under the Superannuation Act 1976.

You aren't the spouse or a child under 16 of a person who is a member of the PSS or an eligible employee in respect of the CSS.

You have advised your superannuation fund of your departure.

You have updated your bank account details to your relatives' address in Australia.

Family and social connections

You have not maintained any professional, social, or sporting connections in Australia.

You have cancelled your gym membership.

Your spouse discontinued their membership at the local Sports Club.

On XX XX 20XX, your child left school in Australia.

You informed the Australian Electoral Commission that you were departing Australia.

You advised your private health insurance provider to have your policy cancelled.

You have established professional, social and sporting connections with Country B since arriving.

From XX XX 20XX your child was enrolled in school in Country B.

You child plays in soccer and basketball clubs and has piano lessons outside school.

You go to the gym and have developed friendships with many locals and parents from your child's school.

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 were not a resident of Australia form your departure date of XX XX 20XX, as follows:

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

•                     You do meet the domicile test because your domicile is in Australia, and the Commissioner is satisfied that your permanent place of abode is outside Australia.

•                     You do meet the 183 day test because you were in Australia for 183 days or more during the 20XX income year, and the Commissioner is satisfied that both:

•                     your usual place of abode is outside Australia, and

•                     you do not intend to take up residence in 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 fulfil the requirements of the Commonwealth Superannuation test.

More information

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

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