Edited version of private advice

Authorisation Number: 1051744286549

Date of advice: 26 August 2020

Ruling

Subject: Residency

Question

Are your foreign incomes assessable in Australia?

Answer

No.

Having considered your circumstances as a whole and the residency tests, you will be a resident of Australia for income tax purposes.

As you would be travelling to, and residing in, Australian under a Visa subclass XX you will be a temporary resident. Due to the operation of the applicable Double Taxation Agreement and the Australian temporary resident rules your foreign income will not be assessable in Australia.

Such income may well be assessable in other countries. You may wish to seek advice on whether such incomes are assessable in Country A or Country B.

This ruling applies for the following periods:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are a Country A citizen who is considering living in Australia on a permanent basis, travelling on a Visa subclass XX.

You and your spouse own a property in Australia where you wish to live. Your main residence, your family and most of your assets are located outside Australia.

You are currently not an Australian resident.

You either receive, or will receive, income from the following sources -

·         A social security pension from Country B.

·         Periodic withdrawals from 2 types of Retirement Accounts.

·         Payments from a variable annuity, a self-funded and self-directed retirement investment.

·         A monthly pension from a previous employer.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 6-5

Income Tax Assessment Act 1997 Section 6-10

Income Tax Assessment Act 1997 Section 768-910

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

Income Tax Assessment Act 1936 Subsection 6(1)