Edited version of private advice

Authorisation Number: 1052236094089

Date of advice: 27 March 2024

Ruling

Subject: Residency

Question

From XX XXXX 20YY to XX XXXX 20YY, are you a resident of Australia for tax purposes under Australian domestic taxation law?

Answer

No.

Under the law, meeting a single test suffices for being deemed a tax resident. In your case, you have not satisfied any of the tests. You are not a resident for tax purposes of Australia.

This ruling applies for the following periods:

Year ended XX XXXX 20YY

Year ended XX XXXX 20YY

Year ended XX XXXX 20YY

Year ended XX XXXX 20YY

Year ended XX XXXX 20YY

The scheme commenced on:

XX XXXX 20YY

Relevant facts and circumstances

You were born in Australia.

You are an Australian citizen.

You commenced your employment contract on XX XXXX 20YY with a fixed term end date of XX XXXX 20YY.

You are employed by an Australian company.

Your employment services are performed in Country A.

You have an exemption status allowing your stay in Country A until XX XXXX 20YY.

You have received confirmation that your employment contract will be indefinitely extended.

You sold the majority of your household effects and motor vehicles in Australia prior to your departure to Country A.

You gave your personal effects of sentimental value to family and friends.

On XX XXXX 20YY, you departed Australia to begin living and working in Country A.

You signed a 12-month tenancy agreement in Country A on XX XXXX 20YY with a commencement date of XX XXXX 20YY.

On XX XXXX 20YY, you returned to Australia and departed to Country A again on XX XXXX 20YY.

Your pet dog was transported to Country A from Australia.

On XX XXXX 20YY, your spouse departed Australia to join you living and working in Country A.

From XX XXXX 20YY to XX XXXX 20YY, you occupied a property in Country A.

Since XX XXXX 20YY, you have occupied a property in Country A.

On XX XXXX 20YY, your child was born in Country A.

You holiday and visit family in Australia for limited periods throughout each income year.

When you visit Australia, you stay in temporary accommodation or in family members guest rooms.

Your assets located in Country A include:

•         Bank accounts

•         Household effects and appliances

•         Personal effects and pet dog.

Your assets in Australian include:

•         Bank accounts

•         An investment property

Your Australian financial institutions have been advised to treat you as a non-resident for tax purposes.

You have no social or sporting connections in Australia.

You and your spouse are part of a weekly bible study within the local Country A Community.

You and your spouse attend a Church in Country A.

You are part of Charity Running Events in Country A.

You have suspended your private health insurance policy.

You have advised the Australian Electoral Officer to have your name removed from the electoral roll.

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

Relevant legislative provisions

Income Tax Assessment Act 1936 ssubsection 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 are not a resident of Australia from XX XXXX 20YY to XX XXXX 20YY, as follows:

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

•         You do not meet the domicile test because your domicile is not in Australia.

•         You do not meet the 183-day test because you will not be in Australia for 183 days or more during the 20YY, 20YY, 20YY, 20YY and 20YY 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.