Edited version of private advice

Authorisation Number: 1052213041417

Date of advice: 18 January 2024

Ruling

Subject: Residency

Question

Are you an Australian resident for tax purposes for the income years ending 30 June 20XX and 30 June 20XX from the date you departed Australia?

Answer

No.

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 are not a resident of Australia for part of the 20YY financial year, and the 20YY financial year, as follows:

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

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

•         You do not meet the 183 day test because you were not in Australia for 183 days or more during the 20YY income year/s.

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

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

DD MM 20XX

Relevant facts and circumstances

You were born in Country A and are a citizen of Australia.

Your travel habits prior to the ruling period were short term and were taken as holidays.

You were granted a fixed term Visa from the government of Country B.

You left Australia shortly thereafter to work in Country B.

Your employment contract with your overseas employer is for a permanent role with no set end date. The work performed is partially performed remotely, however there is a requirement to be onsite otherwise.

Your current intention is to apply for a visa extension once the Visa expires.

You returned to Australia on DD MM 20YY to visit family.

You returned to Country B on DD MM 20YY and have remained there since.

You are a resident of Country B for tax purposes.

You have no spouse or dependent children. You have a long-term partner who is a citizen of Country B.

You provide financial assistance to a parent who resides in Australia.

You lived in a property that you own prior to departing Australia, and this was your principal place of residence. You continue to own and pay the mortgage for this property, and your parent is currently residing in the property.

You own an investment property within Australia for which you receive rental income. The property was first rented in 20YY and is managed by a real estate agency.

You hold an overseas driver's license.

You have informed the Australian Electoral Commission to register as an overseas voter.

When you left Australia, you advised your private health insurance provider to have your policy suspended/cancelled. You have an overseas private health insurance policy, provided by your employer.

While residing overseas, you have rented an apartment. Initially you had a rental agreement for a set term and are currently on a month-to-month lease. The decision to remain on a month-to-month lease was yours, as you prefer the flexibility.

You have multiple bank accounts in Country B, and also have multiple Australian bank accounts.

Your Australian household and personal effects remain at your previous primary place of residence.

Your mailing address is in Country B.

You have no definitive plans to return to Australia in any long term capacity in the near future but hope to return to Australia for a short visit to visit family and friends.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

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