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Edited version of your private ruling
Authorisation Number: 1012237220305
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Ruling
Subject: Residency for tax purposes
Question:
Were you a resident of Australia for taxation purposes from when you left Australia until your return?
Answer:
No.
This ruling applies for the following periods:
Year ended 30 June 2006
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
The scheme commenced on:
1 July 2005
Relevant facts and circumstances
You were born in Australia.
You are a citizen of Australia.
You left Australia to work and live a number of years ago.
You were overseas for a number of years before returning.
You lived in rented accommodation overseas.
You had no assets in Australia.
Prior to going overseas you lived with a family member.
You have never been a Commonwealth Government employee.
Relevant legislative provisions:
Income Tax Assessment Act 1936 Subsection 6(1).
Income tax Assessment Act 1997 Section 6-5.
Income Tax Assessment Act 1997 Subsection 995-1(1).
Reasons for decision
To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income.
The definition of 'resident' within tax law 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
You do not meet any of the above tests and are not considered a resident of Australia for tax purposes from when you left Australia.
The factsheet Residency - what you need to know provides details of the above residency tests and may be obtained from our website www.ato.gov.au.