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Edited version of private advice
Authorisation Number: 1051603002109
Date of advice: 5 November 2019
Ruling
Subject: Residency - departing
Question
Did you cease to be a resident of Australia for income tax purposes from the date of your departure?
Answer
Yes.
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 from the date of your departure. Further information on residency can be found by searching 'QC 33232' on ato.gov.au
Note: If your circumstances materially change, this private ruling no longer applies.
This ruling applies for the following periods:
Year ended 30 June 2019
Year ending 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are an Australian citizen.
Your partner is an Australian citizen.
You and your partner departed Australia to live in Country A indefinitely.
You can lawfully reside in Country A indefinitely.
You are semi-retired and have no business ties in Australia.
You have an adult child who lives independently with their partner.
Your home in Country A is fully furnished and contains all your personal belongings such as clothing and personal effects.
You have joined various clubs in Country A.
You and your partner have taken out private health insurance in Country A.
You have a joint bank account with your partner in Country A.
You have friends and social contacts in Country A.
You and your partner jointly own a block of land and a house in Australia, Property A. You intend to rent out this property or leave vacant so that it may be used by friends and family or by you and your partner during your visits to Australia.
You solely own the following properties:
· Property B: You are in the process of selling. This property was previously your main residence.
· Property C: you intend to either sell, rent out or leave vacant for family use.
· Property D: currently being rented out.
You expect to visit Australia 6 to 8 times a year for a total of 60-90 days to visit friends and family.
You have received confirmation from the Australian Electoral Commission that you have been removed from the electoral roll.
You have maintained an Australian bank account jointly held with your partner. This is primarily used to deal with rent receipts and expenses in respect of your Australian properties held.
You and your partner are not eligible to contribute to the relevant Commonwealth superannuation funds.
Your superannuation entitlements are held in an Australian self-managed superannuation fund which has a corporate trustee that is owned by you and your partner. The corporate trustee also acts as a trustee for a discretionary trust controlled by you and your partner.
You own shares in a proprietary limited company that acts as a trustee for a discretionary trust controlled by you and your partner.
You own shares in a proprietary limited company that holds investments in Australia.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 6(1)
Income Tax Assessment Act 1997 Subsection 995-1(1)