Edited version of private advice

Authorisation Number: 1051778598174

Date of advice: 10 November 2020

Ruling

Subject: Residency

Question 1

Are you a resident of Australia for income tax purposes after your departure in late 20XX?

Answer

No. 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. The Commissioner is satisfied that you have established a permanent place of abode outside Australia. Further information on residency can be found by searching 'QC 33232' on ato.gov.au.

Question 2

Have you established a "permanent place of abode" outside of Australia since departing Australia??

Answer

Yes. the Commissioner is satisfied that you have established a permanent place of abode in Country A.

This ruling applies for the following periods:

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 who departed Australia in late 20XX to take up a position with Company A in Country A. You commenced in this position immediately in support of a substantial project in that country. You work XX days on, X days off.

Upon departure you intended to reside in Country A permanently until at least 20YY but to likely reside outside Australia indefinitely.

Your employer has provided a letter to confirm that you are expected to be employed on this project until at least 20YY, the expected lifespan of the project. You therefore intend to reside in Country A until then, depending on project requirements.

You hold a valid long stay visa, which was arranged by and will be renewed by, your employer as required. Such visas are issued for 12 months at a time. Again, your employer has confirmed this arrangement in writing.

You are considered to be a local tax resident for Country A tax purposes. This status has been confirmed in writing by your employer. You intend to lodge Australian returns as a non-resident.

You are paid monthly into a local bank account and you pay local tax on this salary. To facilitate this, you have opened a local bank account.

You reside in long-term, fully furnished, accommodation supplied by your employer. You have exclusive use of this accommodation which is not shared. You have purchased minor articles for this accommodation, spending perhaps $XXX on these upgrades. Prior to departure you resided in rented accommodation with your wife.

You do not travel outside Country A for rest and recreation. You do take breaks at a local town where you stay at accommodation provided by your employer. Typically, you stay there for X days per month staying at a local hotel.

Upon departure your household effects remained with your wife in her rented home in Australia. Before departure you and your wife had rented together for approximately XX years.

Your wife has been diagnosed with a serious chronic illness and is unable to travel. She has therefore remained in Australia. She does not have an income due to her illness. She has arranged a separate private health insurance policy for herself.

Your adult children have also remained in Australia.

You do not own Australian property. You have no material assets or investments in Australia apart from some vehicles with an estimated value of $XXX. You are arranging to transfer ownership of these vehicles to you wife. You also have Australian superannuation funds.

You are closing your remaining Australian bank accounts and will also advise them of your non-resident status. You expect your Australian bank accounts to be closed by the end of this year.

You do not expect to receive income from Australian sources while living overseas.

You have advised the Australian Electoral Commission of your departure and have asked that your name be removed from the voting rolls.

You have cancelled your Australian private health insurance policy and taken an international private health policy. This international health insurance policy was arranged by your employer.

You have returned to Australia on 2 occasions since departure, once for XX days and again for YY days. These trips were for a short holiday and to visit family and friends. You stayed at your wife's rented property on each occasion.

In future, you anticipate returning to Australia once per year for no more than XX days or less on each visit.

When visiting Australia, you declared yourself as a resident but thought that this was an immigration declaration only with no relevance to taxation matters.

You and your wife have separate social and living arrangements but remain married.

You provide monthly financial support for your wife and assist her to pay medical bills. The amounts you transfer to your wife vary, depending on need, and have ranged from $XXX to $YYY. The total amount remitted so far to your wife is $ZZZ.

You ceased membership of professional and social groups in Australia before departure. You intend to establish professional and social relationships locally over the next few years.

Neither you nor your wife has ever been employed by the Australian Commonwealth government and neither belongs to any Commonwealth superannuation scheme such as CSS or PSS.

Relevant legislative provisions

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

Income Tax Assessment Act 1936 Subsection 6(1)