Edited version of private advice

Authorisation Number: 1051648780433

Date of advice: 20 March 2020

Ruling

Subject: Residency for tax purposes - leaving Australia for work and renting in an overseas country

Question

Am I an Australian resident for tax purposes from xx XXXX 2019 pursuant to section 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936)?

Answer

No

Having considered your circumstances and the relevant factors, you are not a resident of Australia for income tax purposes under section 995-1(1) of the Income Tax Assessment Act 1997 and subsection 6(1) of the ITAA 1936 as you have not met any of the tests required to be considered a resident of Australia from xx XXXX 2019.

This ruling applies for the following period:

Year ended 30 June 2019

The scheme commences on:

Xx XXXX 2019

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You commenced employment in your current field several years ago. Until that time you permanently resided in Australia.

For the majority of the time since then you were employed outside Australia by both Australian and overseas non-government organisations (NGO) except for a period of time in one financial year when you resided in Australia for more than 183 days.

Other than a short period of time when you were working overseas with an Australian NGO, all employment income has been from outside Australia. You also receive income from your Australian investment properties.

You were subsequently employed by an overseas NGO on permanent contracts. Your permanent contract is currently being negotiated.

It is a requirement of your employment that you permanently relocate to that country and you formed your intention to permanently relocate there in 2019 and make it your permanent place of abode.

When leaving Australia in 2019 you indicated you were an Australian resident departing permanently on the outgoing passenger card. After a visit to Australia in later that year you indicated you indicated you were a visitor departing on the outgoing card.

While you will continue to travel extensively to perform your employment duties, you have signed an open-ended lease in the country of your employment and consider the residence to be your permanent abode. You pay tax on your employment income in that country as you are considered a resident there for tax purposes.

You will make occasional visits to Australia to visit family and friends for short periods at a time.

You do not have any Australian memberships or sporting connections.

You have a bank account and household effects in the country where you now reside and have commenced language classes there. You have a wide circle of friends in that country and across the continent.

You continue to maintain a bank account in Australia for investment purposes.

All household effects in Australia were either sold, donated or given to family and friends.

During 2019 you had your name removed from the electoral role and Medicare and notified the bank of your overseas address. Your Private Health Insurance was also cancelled.

You do not contribute to the Commonwealth Government Superannuation fund.

Relevant legislative provisions

Income Tax Assessment Act 1936 section 6(1)