Edited version of private advice

Authorisation Number: 1052229501060

Date of advice: 19 March 2024

Ruling

Subject: Residency of Australia for taxation purposes

Question

Are you a resident of Australia for taxation purposes?

Answer

Yes.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were born in Australia.

You are a citizen of Australia.

You are not a permanent resident of any other country.

You went to Country Z a couple of years ago.

You went to Country Z on your own.

The purpose of your visit to Country Z was to experience the culture and you have chosen to extend your stay in Country Z to experience further the authentic Country Z lifestyle.

You enter Country Z on an electronic visa which was valid for a number of days. The visa is now available for a number of months at a time.

You need to leave Country Z to be able to be issued with another visa.

You will go to Country Y for a few days or more to be issued with another visa.

You provided a copy of the Country Z electronic visa valid for a number of months showing purpose of entry is tourism.

You do not intend on being in Country Z on a permanent basis.

Your visit to Country Z is temporary.

You intend to return to Australia and purchase a property.

You do not have a spouse.

You do not have any children.

You entered into your first apartment rental agreement in Country Z a few months after you first arrived. This lease was cancelled prior to the expiration date.

You moved into a new lease several months after the first lease and the second lease was renewed.

You do not own property in Australia.

Prior to your move to Country Z, you resided in the family home in Australia with family.

You are currently not employed in Country Z or Australia.

You intend to return to Australia on an annual basis to visit your family in Australia.

You will be in Australia for a couple of weeks at a time and you will stay with your family in Australia.

Since your move to Country Z, you have spent a couple of weeks days in Australia.

You own the following assets:

a. Cash savings in Australian bank accounts.

b. Investments acquired prior to your relocation to Country Z which you derive income and capital gains.

c. Investments acquired after you left Australia.

d. Australian superannuation.

You have not notified your Australian banks of your move overseas.

You remain on the Australian Electoral Roll.

You maintain your Australian Private Health Insurance.

You have not informed Medicare of your move overseas.

You lodged income tax returns as a tax resident of Australia for the income years ended 30 June 20XX and 30 June 20XX.

You have joined a gym in Country Z.

You have not shipped material possessions to Country Z, however you have shipped some small possessions to Country Z.

You previously held an Australian driver's licence, which has expired. However, it remains eligible for renewal.

You do not hold a driver's licence in Country Z.

You are not eligible to contribute to the PSS or the CSS commonwealth super funds.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

Income Tax Assessment Act 1997 subsection 995-1(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 are a resident of Australia for tax purposes for the relevant income years as follows:

•         You are a resident of Australia according to the resides test.

•         You have not abandoned Australia as your home, and you intend on returning to Australia.

•         You have gone to Country Z on a temporary basis, and you are required to leave Country Z every few months to obtain another visa.

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

•         You do not meet the 183-day test.

•         You will return to Australia for visits while you are in Country Z, and you intend on coming back to Australia to live and purchase a property.

•         You do not fulfil the requirements of the Commonwealth superannuation fund test.

In summary, you are a resident of Australia for tax purposes.

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