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Edited version of your written advice
Authorisation Number: 1051519598829
Date of advice: 18 May 2019
Ruling
Subject: Residency
Question
Are you an Australian resident for the purpose of the Income Tax Assessment Act 1997?
Answer
No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.
This ruling applies for the following periods:
Year ended 30 June 2018
Year ending 30 June 2019
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You were employed by Company A in Australia for the period March 2014 to July 2017.
In mid-2017 you ceased employment with Company A and travelled to Country A to commence employment with Company B. Company B is owned by the same parent company as Company A.
Your intention was to remain overseas for a minimum of two years. Your flight departure card was marked “Australian Resident departing permanently” in accordance with this intention.
Your sibling was residing in Country E at the time of your departure.
The employment contract at Company B was initially for one year however there was an understanding that this would be extended provided all parties were happy with the arrangement. There was no requirement for you to return to Company A and in fact had to renegotiate to be reemployed on your return to Australia. Your spouse who resided with you overseas did not return to employment with Company A.
You resided in rental accommodation in Australia and the lease on this property was terminated.
You had minimal belongings which were either sold or given to relatives and friends to use. A small amount, less than $2,000 in value of the furniture was given back to you on your return.
No real estate property was or is owned by you in Australia.
You resided in rental accommodation in Country A, the lease was for a 12 month term as is common in Country A and to coincide with the initial employment contract term.
You sold your motor vehicle.
You resided in Country A with your spouse.
You only returned to Australia to visit family on one occasion.
You cancelled your Australian Health Insurance.
You opened bank accounts with an international bank into which your salary was paid in Country A. All Australian accounts were closed except those that remained open for travel funds and to receive back pay from Company A.
Despite the intention to remain in Country A for in excess of three years the following circumstances changed:
● Your spouse was offered an Australian based job which was an opportunity they could not refuse.
● Your sibling returned to Australia to reside.
As a result you resigned from Company B and returned to Australia in 2018.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(1)
Income Tax Assessment Act 1936 subsection 6(1)