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Edited version of private ruling
Authorisation Number: 1011873071287
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Ruling
Subject: Residency
Question
Are you a temporary resident for taxation purposes?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2010
Year ended 30 June 2011
Year ending 30 June 2012
Year ending 20 June 2013
Year ending 30 June 2014
The scheme commenced on
1 July 2009.
Relevant facts
You arrived in Australia during 2009. This is the first time you have entered the country.
You have entered Australia on a temporary business entry.
The visa validity period is four years.
You are sponsored person, employed on a full-time basis.
You are not an Australian citizen.
You are single.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1)
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.
The Migration Act of 1958 provides that a temporary visa is a visa to travel to and remain in Australia:
· during a specified period
· until a specified event happens or
· while the holder has a specific status.
Temporary visas are distinguished from permanent visas which allow a person to remain in Australia indefinitely.
Under the Social Security Act 1991 an Australian resident is generally a person who resides in Australia and is either an Australian citizen, or holds of a permanent visa.
In your case, you hold a temporary resident visa granted under the Migration Act 1958 and you are not classed as an Australian resident within the meaning of the Social Security Act 1991. As you are single and you do not have a spouse who is an Australian resident, you also meet the third criteria under subsection 995-1(1) of the ITAA 1997.
Therefore, it is considered that you are a temporary resident of Australia for tax purposes for the period you hold the temporary resident visa.
However you will cease to be a temporary resident if you;
· become an Australian citizen or hold a permanent visa, even if you hold a temporary visa at a later time or
· marry or establish a de-facto relationship with a person who is a permanent resident or Australian citizen (or who becomes a permanent resident or Australian citizen during the relationship), even if the relationship subsequently breaks down.