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This edited version has been archived due to the length of time since original publication.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

Authorisation Number: 1011717776705

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Ruling

Subject: Temporary resident

Question

Are you a temporary resident for taxation purposes?

Answer: Yes

This ruling applies for the following period

Year ended 30 June 2010

The scheme commenced on

1 July 2009

Relevant facts and circumstances

You are a citizen of country A.

You and your spouse arrived in Australia and became an Australian resident in the 2002-03 income year.

You hold a special category visa which is a temporary visa.

You are not a holder of a permanent resident visa in Australia.

Your spouse is also a country A's citizen and holds the same class of visa.

You and your spouse are only entitled to a limited range of social benefits in Australia.

Relevant legislative provisions

Subsection 995-1(1) of the Income Tax Assessment Act 1997

Section 768-910 of the Income Tax Assessment Act 1997

Section 768-915 of the Income Tax Assessment Act 1997

Section 768-980(a) of the Income Tax Assessment Act 1997

Subsection 768-910(3) of the Income Tax Assessment Act 1997

Reasons for decision

A temporary resident as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) is a person:

    · who holds a temporary visa granted under the Migration Act 1958, and

    · who is not an Australian resident within the meaning of the Social Security Act 1991, and

    · whose spouse is not an Australian resident within the meaning of the Social Security Act 1991.

Under the Social Security Act 1991, an Australian resident is a person who resides in Australia and is either an Australian citizen or holds a permanent resident visa. Taxpayers who hold a protected special category visa and were in Australia on or before 26 February 2001 are also considered to be Australian residents for the purposes of the Social Security Act 1991.

In your case, you are a country A citizen in Australia under a temporary special category visa and neither you, nor your spouse, are Australian residents within the meaning of the Social Security Act 1991. You therefore satisfy the conditions for a temporary resident defined in subsection 995-1(1) of the ITAA 1997. Accordingly, the foreign source income exemption for temporary residents is available to you as long as you continue to be a temporary resident.


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