| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051743245797
Date of advice: 21 August 2020
Ruling
Subject: Residency
Question
Are you a resident of Australia for income tax purposes?
Answer
No. Based on the facts you have provided, we can conclude that you will not satisfy any of the tests of residency.
Accordingly, 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 Income Tax Assessment Act 1936.
You are not assessable on your foreign sourced income from when you left Australia.
This ruling applies for the following periods:
Year ended 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
Year ending 30 June 2023
Year ending 30 June 2024
Year ending 30 June 2025
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are a citizen of Australia and Country Y.
You and your spouse moved to Country Z in the 20XX income year to live and work.
You have a XX month contract with your employer in Country Z.
The contract can be extended for a further XX months and this is your intention.
You will move to Country X to live once you have completed the time in Country Z.
Your family home in Australia is being rented out at commercial rates to a related party.
If you return to Australia on holiday you will stay with family and friends or in short term accommodation.
You and your spouse have the following assets in Australia:
· An investment property in Australia which is leased on a short-term basis (holiday home)
· A portfolio of shares
· Superannuation Fund(s) in Australia
· An Australian investment account that produces interest and dividend income
You have notified your superannuation fund and financial institutions in Australia, that you have
ceased to be a resident of Australia for tax purposes.
You have deregistered yourself from the Electoral role in Australia.
You have sold your cars in Australia.
You are renting accommodation in country Z.
As a result of the Covid-19 pandemic your employer in Country Z required you and your spouse return to Australia temporarily.
You intend on returning to Country Z as soon as the travel restrictions have been lifted.
You and your spouse are not eligible to contribute to the PSS or the CSS Commonwealth super funds.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6(1)
Income Tax Assessment Act 1997 section 995-1(1)