Edited version of private advice

Authorisation Number: 1051658741155

Date of advice: 14 April 2020

Ruling

Subject: Residency for tax purposes

Question

Did you cease to be tax resident of Australia when you relocated to Country X?

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.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are an Australian citizen.

You relocated to Country X for employment reasons.

At the time you left for Country X you intended to reside there indefinitely.

You have an employment related visa that allows you to work in Country X.

You applied for Country X permanent residency but your application was rejected. You intend to reapply.

You shared an apartment in Country X before renting your own apartment.

You took your personal belongings to Country X and purchased some furnishings for the apartment as it was only partially furnished.

You opened a bank account in Country X into which your salary payments are paid.

You also have two credit cards in Country X as well as a foreign currency account for investment purposes.

Your Australian credit cards have expired.

You receive medical and dental insurance through your employer in Country X which also covers your spouse and children when they visit.

You do not currently own a property in Country X but intend to purchase one after you receive permanent residency.

You have been granted rights to shares with your employer while you have been in Country X.

You have paid tax in Country X as a tax resident.

You have many local friends in Country X and your social activities include sports, shopping and dining with friends.

You have a spouse and two school aged children in Australia.

Your spouse is employed in Australia.

Initially, your family was to relocate to Country X with you and your spouse secured employment in Country X and started looking for schools for your children.

Soon after you relocated to Country X, the health of one of your parents deteriorated. You and your spouse then decided that as your earning capacity was greater, your spouse would remain in Australia with the children until suitable arrangements could be made for your parents.

It is intended that your family will relocate to Country X once alternative arrangements have been made for your parents.

Your family visit you in Country X during every school holiday period.

You have only made occasional return visits to Australia as your annual leave allows. You have spent about 30 days in Australia during each of the last 2 years.

You tick the visitor box on immigration cards when you visit Australia.

You and your spouse jointly own the home in Australia your family live in.

You and your spouse also jointly own two investment properties in Australia which were purchased prior to you relocating to Country X. You declare rental income in your Australian income tax returns.

You and your spouse have loans over the Australian properties as well as related offset accounts.

You still have a family Medicare card in Australia, but you have not used the card yourself since you relocated to Country X.

You and your family have private health insurance in Australia but you have not used the insurance yourself since relocating to Country X.

You removed your name from the Australian electoral roll just before the time you relocated to Country X.

You have an Australian drivers licence but you do not intend to renew it. You do not drive in Country X.

You have not sent any funds to Australia in the last two years.

Relevant legislative provisions

Income Tax Assessment Act 1936 Section 6(1)