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Edited version of private advice
Authorisation Number: 1051635012140
Date of advice: 5 March 2020
Ruling
Subject: Residency
Question
Are you a resident of Australia for income tax purposes?
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 period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
Your country of origin is Australia and you are a citizen of Australia.
You moved with your partner from Australia to foreign country A. Prior to your departure you and your partner were living on a permanent basis in Australia.
You transferred with the company you worked for in Australia. You were required to quit your job with the Australian entity and be re-hired with the foreign country A entity.
Your partner quit their Australian job and found a similar job shortly after arriving in the country A.
Neither you nor your partner has been granted permanent residency by any country.
You entered foreign country A on Visa type Z. Although this visa allows for a maximum stay of X years, your employment contract is open-ended and when your current visa expires you expect to obtain Visa type Y, which allow for stays of several years, before transitioning to permanent residency in foreign country A.
Your foreign country A employer has indicated they will sponsor your application for permanent residency as you are on foreign country A shortage occupation list making a successful application highly probable. Additionally, if only you or your partner is successful, the other would be permitted to remain in foreign country A via a spousal visa.
You have supplied a copy of your employment contract.
Your purpose in moving to foreign country A is to live with your partner and work in foreign country A with the plan of remaining there for at least several more years.
You formed the intention of making your home indefinitely outside Australia before leaving Australia. After discussion with your foreign country A employer and they intend to sponsor your application for Visa type Y.
You plan to return to Australia in mid-2020 in order to apply for your Visa type Y - it is a requirement that they be applied for from Australia.
You do not hold return airline tickets.
You have not come back to Australia since first leaving.
You have a place to live overseas. You live with your partner in a unit which you rent privately - it is not provided by your employer. Your current lease is the standard 12 month lease. You have supplied a copy of your current lease.
Your current assets overseas are:
- A day-to-day bank account in the country A into which your salary is paid.
- You also have a savings account.
- You are currently in the process of getting a country A driver's licence.
- You and your partner have purchased appliances and furniture for your flat.
Your current assets Australian assets are:
- You have a bank linked to a credit card. Once you obtain a credit card in foreign country A you intend to close this account.
- An account which you opened in order to open a foreign country A account from Australia.
- A term account to take advantage of the higher interest in Australia.
- You have an Australian driver's licence which you will allow to expire.
In Australia you lived in rented accommodation. Neither you nor your partner has a place to live in in Australia.
You and your partner have disposed of your Australian household effects except some personal effects stored at someone's house.
You are employed in foreign country A. Your employment contract is on-going subject to visa requirements being met.
Your partner is employment in foreign country A.
You do not have a position or job being held for you in Australia.
You and your partner have lived together prior to and after moving to foreign country A. You have no children.
You have friends and family in Australia but no social or sporting connections.
You have social and sporting connections in foreign country A.
Neither you nor you partner have never been Commonwealth of Australia Government employees for superannuation purposed.
You have not advised the Australian Electoral Office to have your names removed from the electoral roll.
You will inform any Australian financial institutions with which you have investments that you are a foreign resident so that non-resident withholding tax will be deducted.
You do not have any investments with Australian companies.
You have not inform Medicare to have you name removed from their records. You do not have private health care in Australia.
You will lodge tax returns in foreign 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)