| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051413544561
Date of advice: 10 August 2018
Ruling
Subject: Residency
Question
Are you a resident of Australia for taxation purposes?
Answer
Yes
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your country of origin is Country A.
You are a citizen of Country A.
You sold most of your belongings in Country A.
You arrived in Country B.
You entered Country B on a visa.
You have a Country B bank account.
You have applied to have your visa extended.
You worked in Country B.
You rented a property in Country B.
You purchased new furniture in Country B.
You left Country B to return to Country A temporarily.
Your intention is to stay in Country A.
You have left Country B for a holiday and intend to return to Country B to reside permanently.
You have no employment waiting for you in Country A.
You have no immediate family living in Country B.
You have social connections within Country B.
You are no longer required to complete a tax return in Country A.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 6(1).
Income Tax Assessment Act 1997 Section 6-5.
Income Tax Assessment Act 1997 Subsection 995-1(1).
Reasons for decision
To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income.
The definition of ‘resident’ within tax law provides four tests to ascertain whether a taxpayer is a resident of Australia for income tax purposes. These tests are:
1. the resides test
2. the domicile test
3. the 183 day test
4. the superannuation 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 to be considered as residency for Australia has been established.
You signed a lease on a property in Country B.
You left Country B for a holiday and intend to return to Country B to reside permanently.
Given the circumstances as a whole and the relevant residency tests, it is accepted that you are a resident of Australia for the tax period 1 July 20XX to 30 June 20XX.