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Edited version of private ruling
Authorisation Number: 1011737152012
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Ruling
Subject: Residency for tax purposes
Questions:
1. Are you a temporary resident of Australia for tax purposes?
Answer: Yes.
2. Is the salary and wages income you earn from Organisation Y taxable in Australia?
Answer: Yes.
This ruling applies for the following periods:
Year ended 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
The scheme commenced on:
1 September 2010
Relevant facts and circumstances
You are a citizen of Country X.
You are employed on a fixed term contract at Organisation Y.
You have a temporary residency visa (sub class 457) which expires in November 2012.
You are currently living in Australia with your spouse and children.
Your spouse also has a temporary residency visa (sub class 457).
You intend to reside in Australia until November 2012.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1).
Migration Act 1958
Social Security Act 1991
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 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.
A person is a resident within the meaning of the Social Security Act 1991 if they are an Australian resident citizen, permanent resident of Australia, or they hold a protected special category visa.
In your case, you hold a temporary visa under the Migration Act 1958. Neither you, nor your spouse, are Australian residents within the meaning of the Social Security Act 1991.
Therefore, you meet the definition of temporary resident.
As you are a temporary resident of Australia for tax purposes, the salary you receive from working at Organisation Y is assessable in Australia.