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Edited version of your written advice
Authorisation Number: 1051321268269
Date of advice: 15 December 2017
Ruling
Subject: Residency
Question
Are you a resident of Australia for income tax purposes?
Answer
No
This ruling applies for the following periods:
Year ended 30 June 2017
Year ending 30 June 2018
Year ending 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You are a citizen of Australia.
You are a Government employee in Country Y.
You left Australia in the 2016 income year.
You have a permanent contract in Country Y.
You have a work visa for Country Y which expires in 2022 and can be extended for a further 5 years.
You intend on working in Country Y for at least the next 5 years.
You rent accommodation in Country Y.
You have made a couple of short trips back to Australia since leaving Australia to visit family and friends, these trips did not exceed 183 days.
You will not be in Australia for more than 183 days in any future income years.
You are a resident of Country Y for taxation purposes.
You are not eligible to contribute to the PSS or the CSS Commonwealth superannuation funds.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 995-1(1)
Income Tax Assessment Act 1936 Subsection 6(1)
Reasons for decision
Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source.
Section 995-1 of the 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.
Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency.
Accordingly you are not a resident of Australia for income tax purposes under section 995-1(1) of the ITAA 1997 and subsection 6(1) of the ITAA 1936.