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Edited version of your written advice
Authorisation Number: 1013008222152
Date of advice: 6 May 2016
Ruling
Subject: Residency
Question 1
Are you a resident of Australia for the period 1July 20XX to 30 June 20XX?
Answer
No.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You will be taking employment with a foreign domiciled company in Country X.
You will be leaving Australia in the relevant income period.
You will be leaving for greater than 2 years.
Your spouse and children will be relocating with you, leaving Australia together.
You will be travelling back to Australia once a year for work.
You will be renting a house in Country X for which your employer will be providing you an allowance to cover this.
You plan to keep you current main residence and rent it out as an investment. You also have another, investment property which you will sell or rent out.
You are selling all major possessions.
You will be cancelling your local club membership.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1)
Income Tax Assessment Act 1936 Subsection 6(1)
Reasons for decision
Section 995-1 of the Income tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936).
The terms 'resident' and 'resident of Australia', in regard to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. The tests are:
• the resides test,
• the domicile test,
• the 183 day test, and
• the superannuation test.
If any one of these tests is met, an individual will be a resident of Australia for taxation purposes.
Given regard to your circumstances as a whole and a consideration of the relevant residency tests, it is accepted that you are not a resident of Australia for tax purposes for the period 1 July 20XX to 30 June 20XX from the point in time that you and your family leave Australia.