| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051377429467
Date of advice: 24 May 2018
Ruling
Subject: Residency for Tax Purposes
Question
Are you a non-resident for Australian tax purposes?
Answer
Yes
This ruling applies for the following periods:
Period ending 30 June 20XX
Period ending 30 June 20XX
Period ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were born in Australia.
You left Australia to work in Country A for 1 year as a post-doctoral scientist.
You have accepted a 2 year extension to your contract of employment.
Your work visa has been extended to the end of your contract.
You rented an apartment and a vehicle.
You are an avid badminton player and play 3 times a week and participate in tournaments.
You have Private Medical insurance subsidised by your employer.
You have returned to Australia for family matters only.
You have a local bank account in country A.
Your employment income is subject to taxes in that country
You do not own a residence in Australia.
All of your personal items have been with you in country A.
Your intention is to further your career and not return to Australia in the near term.
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 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.
On the information provided you do not meet any of these tests and are therefore considered a non-resident for tax purposes.