Edited version of your written advice

Authorisation Number: 1051371486044

Date of advice: 11 May 2018

Ruling

Subject: Residency – Departing Australia

Question

Are you a resident of Australia for income tax purposes?

Answer

No

Having considered your circumstances and the relevant factors, 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 as you have not met any of the tests required to be considered a resident of Australia.

This ruling applies for the following periods:

1 July 20xx to 30 June 20xx

The scheme commences on:

1 July 20xx

Relevant facts and circumstances

You were born in the XX and you migrated to Australia.

You are a citizen of both the XX and Australia.

You are an Instrument Technician for the oil and gas industry.

You have worked in ZZ since January 20xx.

Prior to leaving Australia you sold the house you were living in and stayed with family until you departed for ZZ.

You were paid in $AUD and received a group certificate in Australia up until 31 August 20xx.

From 1 September 20xx you commenced working as a contractor for the company YY based in ZZ.

You have three children in Australia.

You are separated from their mother.

You do come back to Australia to visit your children and for holidays. You indicate on your incoming passenger cards that you are visiting family and friends in Australia.

During the 20xx/xx financial year you were in Australia for a total of xx days:

● 23 July 20xx till 30 July 20xx (8 days)

● 24 September 20xx till 8 October 20xx (15 days)

● 30 December 20xx till 7 January 20xx (9 days)

● 13 May 20xx till 27 May 20xx (15 days)

You had an abode in ZZ which was your permanent residence and you kept all your personal belongings there.

When you return to ZZ for your next project it will be in a different location so you plan to get an apartment close by. You have stored your belongings with friends until you return.

You have no intention of living back in Australia in the foreseeable future.

In July 20xx, you purchased an investment property in Australia. The property is currently leased.

You have no intention to live in this property in the foreseeable future.

The property was purchased based on your knowledge of the market in Australia.

A bank account in Australia is set up for the rent and expenses to be paid.

You use your mother’s address as your mailing address for statements.

You do not have private health insurance in Australia.

You have not been on the electoral roll for the past two years.

You have not retained any household effects in Australia and your personal effects are in ZZ.

You have been using your mother’s house as a mailing address and any statements are sent to you by email.

You have opened a bank account in ZZ and purchased other personal and household goods there.

You have not maintained any social, professional or sporting associations in Australia.

You have not established any professional, social or sporting associations in ZZ, however you do socialise, play golf and go fishing there.

You are in the process of obtaining your ZZ drivers’ licence.

During 20xx you were in Australia for holidays for the following periods:

● 2 July 20xx till 23 July 20xx (22 days)

● 11 September 20xx till 2 October 20xx (22 days)

You worked two offshore trips on oil and gas rigs in Australia of 28 days between 3 October 20xx and 30 December 20xx until you resigned.

You stayed in Australia until 2 February 20xx for a holiday before returning to ZZ to start your next project. A total of 167 days.

You do not intend on returning to Australia before 30 June 20xx.

You have lodged taxation returns in ZZ as you were a tax resident in that country.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 995-1

Income Tax Assessment Act 1936 subsection 6(1)