| 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: 1051863376573
Date of advice: 14 July 2021
Ruling
Subject: Temporary resident
Question 1
Are you a temporary resident as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. You are a temporary resident as you hold a temporary visa granted under the Migration Act 1958, you are not an Australian resident within the meaning of the Social Security Act 1991, and you do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991. Under the Social Security Act 1991, an Australian resident is a person who resides in Australia and is either an Australian citizen, the the holder of a permanent resident visa or the holder of a protected special category visa.
Question 2
Does section 768-910 of the ITAA 1997 apply so that income you derive (apart from remuneration for employment undertaken, or services rendered, by you personally or attributed to you from another entity) from a foreign source is non-assessable non-exempt income?
Answer
Yes. Section 768-910 of the ITAA 1997 has the effect that income you derive directly or indirectly from a foreign source (apart from remuneration for employment undertaken, or services rendered, by you personally or attributed to you from another entity) is non-assessable non-exempt income if you are a temporary resident when you derive it.
Question 3
Is a capital gain or capital loss you make from a capital gains tax (CGT) event disregarded if a CGT event happens in relation to a CGT asset that is not taxable Australian property?
Answer
Yes. Section 768-915 and section 855-10 of the ITAA 1997 apply if you are a temporary resident so that a capital gain or capital loss you make from a CGT event is disregarded where a CGT event happens in relation to a CGT asset that is not taxable Australian property. Broadly, taxable Australian property includes direct and indirect interests in Australian real property.
This ruling applies for the following period periods:
Year ended 30 June 20XX
Year ended 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 a resident of Australia for tax purposes.
You and your spouse are citizens of Country X.
You and your spouse hold temporary resident visas.
You and your spouse do not hold an Australian permanent resident visa or a protected special category visa.
You have an ownership interest in real property in Country X.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1