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Edited version of private ruling
Authorisation Number: 1011657360089
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
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Ruling
Subject: Residency
Are you an Australian resident for taxation purposes?
Yes.
This ruling applies for the following periods:
Year ended 30 June 2010
The scheme commences on:
1 July 2009
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a citizen of Country X.
You arrived in Australia in the 2005-06 income year with your family.
You are a holder of a temporary visa that allows you to live in Australia for five years.
You intend to live in Australia permanently.
You applied for permanent residency in Australia.
You are living in a rented accommodation in Australia and prior to moving to city A, you rented the same place for seven years in city B.
You left Australia in latter part of 2009 for two months for holiday purposes to visit your family relatives.
You have furniture and a bank account in Australia
You do not have a permanent place to live overseas.
You are a member of a local club and play a sport.
You do not have any assets in your country of origin.
Relevant legislative provisions
Subsection 6(1) of the Income Tax Assessment Act 1936
Reasons for decision
The terms resident and resident of Australia, in regard to an individual, are defined in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are:
· the resides test
· the domicile test
· the 183 day test
· the superannuation test.
The primary test for deciding the residency status of an individual is whether the individual resides in Australia according to the ordinary meaning of the word resides. If the primary test is satisfied the remaining three tests do not need to be considered as residency for Australian tax purposes has been established.
The ordinary meaning of the word 'reside', according to the Macquarie Dictionary, 2001, rev. 3rd edition, The Macquarie Library Pty Ltd, NSW, is 'to dwell permanently or for a considerable time; having one's abode for a time', and according to the Compact Edition of the Oxford English Dictionary (1987), is 'to dwell permanently, or for a considerable time, to have one's settled or usual abode, to live in or at a particular place'.
Taxation Ruling TR 98/17 considers the residency status of individuals entering Australia and states that the period of physical presence or length of time in Australia is not, by itself, decisive when determining whether an individual resides here. However, an individual's behaviour over the time spent in Australia may reflect a degree of continuity, routine or habit that is consistent with residing here.
In your case, it is considered that you are an Australian resident for tax purposes under the resides test for the following reasons:
· you came to Australia with your family with an intention to live here permanently
· you have applied for permanent residence in Australia
· you have a permanent place to live in Australia
· you have social and sporting connections in Australia, and
· you have an Australian bank account.
Based on the information you have provided, it is considered that you are an Australian resident for tax purposes from the date of your arrival in Australia as your behaviour in Australia reflects a degree of continuity, routine or habit that is consistent with residing here.