Edited version of private advice

Authorisation Number: 1052290077893

Date of advice: 16 August 2024

Ruling

Subject: Residency

Question

Are you a tax resident of Australia?

Answer

No.

This private ruling applies for the following period:

Year ending XX June 20XX.

Year ending XX June 20XX.

Year ending XX June 20XX.

Year ending XX June 20XX.

The scheme commenced on:

X August 20XX.

Relevant facts and circumstances

You are a citizen of Australia.

You received an offer to attend a University in Country B from August 20XX to December 20XX.

You were enrolled in an undergraduate degree as an international student.

From August 20XX to May 20XX, you resided in a campus dormitory at the University which was paid for by yourself.

From May 20XX to August 20XX, you were residing in temporary housing in Country B which was paid for by yourself.

From August 20XX to December 20XX, you rented an apartment Country B, under a lease.

In December 20XX, you extended the rental lease in Country B until December 20XX and again from December 20XX to July 20XX.

You did not return to Country A at any time between August 20XX to December 20XX.

You completed an internship for the company in Country B, from X July 20XX to August 20XX.

During the time of this internship, the company provided you housing in Country B. You continued renting the original property in Country B during this time.

On X August 20XX, you were offered full time employment with the company

The location of the employment is in Country B.

In December 20XX, you left Country B to visit relatives in Country C.

In January 20XX, you left Country C to visit relatives in Australia.

On XX February 20XX, you departed Australia on a Visa. Your relatives did not accompany you to Country B.

You did not have a spouse or children at any point during the ruling period.

After departing Australia, you arrived in Country B and spent X weeks there. During this time, around X February 20XX, you signed a lease for the apartment in Country B you would end up residing in.

This lease ends on XX March 20XX.

You then flew to Country D on X February 20XX and spent X weeks there for training pertaining to your employment with the company. The company paid for your accommodation in Country D.

You then departed Country D and flew to Country B, arriving on XX March 20XX.

You were still leasing the original rental until July 20XX however upon returning to Country B from Australia, you did not return to this rental.

The visa grants you residency in Country B for XX months, with an option to extend this for an additional XX months under a second visa status.

You intend to stay in Country B for the XX month duration allowable under the visa and intend to elect to extend your stay by XX months allowable under the second visa.

The employment with the company is contracted for X year which may be extended.

You intend to return to Australia once your visa is no longer valid.

You do not currently hold a return airfare ticket to Australia.

You have bank accounts and a credit card in Country B.

You have active bank accounts in Australia and a brokerage account for personal use.

The brokerage account receives income in the form of trades.

You do not own property in Australia.

Your relatives reside in Australia and you have some social connections here.

You have never been an employee of the Commonwealth Government of Australia for superannuation purposes.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

Income Tax Assessment Act 1997 section 995-1

Reasons for decision

Summary

For the purpose of the ruling period, you are not a resident of Australia for tax purposes as you do not meet any of the residency tests.

Detailed reasoning

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 the period of X August 20XX to XX June 20XX, 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 in 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 relevant income years.

•                You do not fulfill 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.