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Edited version of your private ruling
Authorisation Number: 1012518661000
Ruling
Subject: Are you a resident of Australia for taxation purposes?
Question and answers:
Are you a resident of Australia for taxation purposes?
Yes.
This ruling applies for the following periods
Year ending 30 June 2012
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
The scheme commenced on
1 July 2011
Relevant facts
You were born in country A.
You are a citizen of country A.
You arrived in Australia a couple of years ago.
You came to Australia to live and work.
You intend on staying in Australia for as long as you are able to.
You are renting your family home out in country A and intend on selling it.
You have an additional rental property which continues to be rented out.
Your spouse accompanied you to Australia.
Both you and your spouse are working in Australia.
You have a long term tenancy agreement.
You own a couple of cars in Australia.
You have returned to country A to visit family and friends for a short period since arriving in Australia.
You have social and sporting connections in Australia.
You have no sporting or social connections in country A.
You have worked for the same employer since arriving in Australia.
Neither you nor your spouse are currently or have ever been Commonwealth Government employees.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1)
Income Tax Assessment Act 1936 Subsection 6(1)
Reasons for decision
Residency
The terms resident and resident of Australia, in regard to an individual, are defined in subsection 6(1) of the Income Tax Assessment Act 1936.
The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are the:
· resides test;
· domicile and permanent place of abode test;
· 183 day test; and
· Commonwealth superannuation fund test.
The primary test for deciding the residency status of each individual is whether they reside in Australia according to the ordinary meaning of the word resides. If the primary test is satisfied the remaining three tests do not need to be considered as residency for Australian tax purposes has been established.
The resides test
The ordinary meaning of the word 'reside', according to the Macquarie Dictionary is 'to dwell permanently or for a considerable time; having one's abode for a time'.
Taxation Ruling TR 98/17 Income tax: residency status of individuals entering Australia considers the residency status of individuals entering Australia and states that the period of physical presence or length of time in Australia is not, by itself, decisive when determining whether an individual resides here. However, an individuals behaviour over the time spent in Australia may reflect a degree of continuity, routine or habit that is consistent with residing here.
The following factors are useful in determining whether your behaviour over the time spent in Australia reflects a degree of continuity, routine or habit that is consistent with residing here:
(a) Intention or purpose of presence;
(b) Family and business/employment ties;
(c) Maintenance and location of assets; and
(d) Social and living arrangements
(a) You and your spouse came to Australia from country A to live and work a few years ago. It is your intention to live and work here for as long as you can. You have returned to country A for a short period to visit family.
(b) You have worked for the same employer since arriving in Australia. You have no employment in country A.
(c) You have a long term tenancy agreement. You also have a couple of cars in Australia. You have rental properties in country A.
(d) You have joined a sporting club and have a busy social life in Australia. You have no social or sporting connections in country A.
You are residing in Australia according to ordinary concepts.
As you meet the resides test there is no need to consider the domicile, 183 day and superannuation tests.
Your residency status
You are a resident of Australia for taxation purposes.