Edited version of private advice

Authorisation Number: 1051688936624

Date of advice: 02 June 2020

Ruling

Subject: Residency for taxation purposes

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 ceased to be a resident of Australia for income tax purposes from the date you departed Australia. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

This ruling applies for the following periods:

Income year ended 30 June 2018

Income year ended 30 June 2019

Income year ending 30 June 2020

Income year ending 30 June 2021

Income year ending 30 June 2022

Income year ending 30 June 2023

Income year ending 30 June 2024

The scheme commences on:

1 July 2017

Relevant facts and circumstances

You departed Australia and arrived in a foreign country to live. You have not returned to Australia to reside since.

You are a long-term employee of a company. You were promoted to the country director for a geographic location. It was determined that your relocation to a foreign country on a long-term basis would be paramount because the objective of your role is to set up commercial opportunities including supply contracts across markets of that region.

Your spouse and children relocated to a foreign country with you. The family have made the choice to reside in a foreign country with you. You, your spouse and children have been enjoying the move to a foreign country so far and can easily see themselves remaining there for many years into the future. You have no intention to return to Australia in the immediate or foreseeable future.

The intention to depart Australia and reside in a foreign country was formed upon promotion to your new role. Having travelled to a foreign country before, you had already experienced the country's culture and lifestyle and were confident that your family would be safe; the children would have access to good education, medical facilities and entertainment. Due to this, both you and your family were excited and positive about the relocation to a foreign country.

You reside in a foreign country using a visa.

Your family reside in a foreign country using a different visa. Their initial visas were valid for X years. These initial visas have expired, and your family have since renewed the visas.

Prior to departure, you and your family resided at an owner-occupied property. The majority of your household effects were sent to a foreign country and the house was left vacant. In a previous tax year, whilst vacant, your family used the property while temporarily visiting Australia. As the property has an area for locked storage, you kept some items in there. Later, a tenant moved in on a long-term lease and has continued to reside at the property since then. All utility bills were transferred across to the tenant's name and the property is available for the tenant's sole exclusive use. Since the tenant has moved in you and your family were no longer able to stay at this property. The tenant moved in, as arranged by a professional property agent.

You have been physically present in Australia for less than 183 days in any income year; partly for work and to visit people.

You own the following assets in a foreign country:

• a foreign country car lease
• furniture in a foreign country residence
• a foreign country bank account for day to day living expenses

You own the following assets in Australia

• The property you lived in.

• A second property which has always been used for investment purposes.

You disposed of assets upon departure from Australia:

• You had an Australian car lease which was terminated.
• A second motor vehicle which was gifted to someone who then disposed of it while you were in a foreign country.

You and your family have lived at several rented locations in a foreign country.

You receive Australian sourced income from:

• your rental properties.
• dividends from Australian shares.

You have been employed in full-time position by a company for many years. Your new role in a foreign country with the company commenced in 2018 and this employment contract was originally for X year term with an option to extend. The contract was successfully extended. You are in the process of negotiating a further extension. If the company decide to extend the contract, you would like to continue in your current role and stay in a foreign country with your family.

When you first relocated to a foreign country, you worked from your apartment there for a period and then relocated to an office. Since then more staff have been recruited in the foreign country. The office has again been relocated for more space.

You have no social and sporting connections to Australia.

You and your spouse have made friends overseas through the expat community and work colleagues. Your children have also made social and sporting connections through attending a school in the foreign country.

You and your spouse have never been Commonwealth Government of Australia employees.

You are unsure if you and your spouse have had your names removed from the Australian electoral roll. However, you have not participated in an Australian election since your departure and do not intend to do so while residing overseas.

Your former private health insurer has been advised that you were moving overseas and have suspended your policy. You have since taken up expatriate insurance to cover you while overseas.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 6(1)

Income Tax Assessment Act 1997 Subsection 995-1(1)