Edited version of private advice

Authorisation Number: 1052187124478

Date of advice: 01 November 2023

Ruling

Subject: Residency

Question

Were you a resident of Australia for tax purposes for the period 1 July 20XX to 30 June 20XX?

Answer

No.

This ruling applies for the following periods:

Year ended 30 June 2020

Year ended 30 June 2021

Year ended 30 June 2022

Year ended 20 June 2023

The scheme commenced on:

1 July 2019

Relevant facts and circumstances

You were born in Australia.

You are an Australian citizen.

You left Australia during the 20XX income year to undertake tertiary study in Country X with the intention to seek long-term employment in Country X once you graduated.

After you graduated you obtained employment in Country X.

During this time, you commenced a business in Country X.

You pay personal income taxes in Country X.

You have lived in Country X since leaving Australia in 20XX.

You lived in rented premises before purchasing a home in Country X.

You reside with your partner who is a Country X citizen. You do not have any dependants.

You hold a Country X driver's licence and have a Country X social security number.

You have multiple bank accounts in Country X.

You have travelled to Australia a few times from Country X to holiday for short periods since departing Australia.

While in Australia you stayed in hotel accommodation or with a friend or family member.

You have not been in Australia greater than 183 days for any of the income years during the period 1 July 20XX to 30 June 20XX.

You own a couple of personal assets in Australia which are stored with one of your parents.

You have an Australian bank account.

You have lodged income tax returns in Australia for the 20XX, 20XX and 20XX income years as a non-resident.

You intend to remain in Country X for the foreseeable future.

You are not a member of the Public Sector Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS), or the spouse of such a member.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 995-1

Income Tax Assessment Act 1936 subsection 6(1)

Reasons for decision

For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests.

•         The resides test (otherwise known as the ordinary concepts test)

•         The domicile test

•         The 183 day test

•         The Commonwealth Superannuation fund test.

We have considered your circumstances, and conclude that you were not a resident of Australia for the period 1 July 20XX to 30 June 20XX, as follows:

•         You were not a resident of Australia according to the resides test.

•         You do not meet the domicile test because the Commissioner is satisfied that your permanent place of abode was outside of Australia.

•         You do not meet the 183 day test because you were not in Australia for 183 days or more during the 20XX, 20XX, 20XX or 20XX income years.

•         You do not fulfil the requirements of the Commonwealth Superannuation test.

More information

For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals.