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Edited version of your private ruling
Authorisation Number: 1012340235565
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Ruling
Subject: residency
Question and answer
Are you a resident of Australia for taxation purposes for the period you were overseas?
No.
This ruling applies for the following periods:
Year ending 30 June 2010
Year ending 30 June 2011
The scheme commenced on:
1 July 2009
Relevant facts and circumstances
You commenced work overseas a number of years ago.
This employment was for an indefinite period.
All work was carried out overseas and not in Australia.
You were provided accommodation by your employer.
You had an investment property in Australia.
You came back to Australia over the Christmas period and inspected the investment property.
You had little contact with Australia for the period you were overseas.
You participated in charity work overseas and involved yourself in the community.
You met your partner overseas and have maintained a long term relationship.
The superannuation test does not apply to you for the period you were overseas.
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:
1. the resides test
2. the domicile test
3. the 183 day test
4. the superannuation test
You do not meet any of the above tests and are not considered a resident of Australia for tax purposes for the period you were overseas.
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