Edited version of private advice

Authorisation Number: 1052295008318

Date of advice: 22 August 2024

Ruling

Subject: Australian resident for taxation purposes

Question

Are you a resident of Australia for taxation purposes from the relevant date?

Answer

No.

This ruling applies for the following period:

Year ending 30 June 202XX

Year ending 30 June 202XX

Year ending 30 June 202XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were born in Country Z.

You are a citizen of both Country Z and Australia.

You are entitled to apply for permanent residency in Country Y by virtue of your spouse's nationality.

You left Australia to live and work in Country X.

Prior to moving to Country X, you worked in Australia.

You are employed on a local, open contract basis with a Country X company.

You have applied to have your professional qualifications recognised in Country X.

You consider the move to Country X to be a permanent relocation with a long-term commitment to establish a professional career in the region.

You are able to enter Country X on a residence permit and Country X identity card which has a year's expiry that is automatically renewed every year by your employer.

You live in an apartment in Country X.

You are renting the accommodation, unfurnished except for kitchen appliances, and washing machine.

The apartment has a living room, kitchen, bedroom bathroom and balcony.

You have purchased all the furniture and household necessities in the apartment.

The accommodation is for your sole use plus your visiting family and friends from time to time.

You pay for the accommodation.

The lease of the property is for a specific period, renewable by mutual agreement with the landlord.

You took all of your personal belongings to Country X such as clothes and hobby and sporting equipment, photography equipment, tennis, and squash rackets, hiking gear along with your family desk top computer.

You intend on purchasing a car in Country X.

You left in Australia in your family home items that are shared with your family or that are not practical or necessary for your new life in Country X such as power tools, thick winter clothing.

You have some professional and personal connections in the wider region stemming from your career working internationally.

Your spouse will remain in Australia with one of your children living in the family home.

Your spouse intends on joining you in Country X once your child has finished their schooling.

You and your spouse own the family home in Australia.

The family home has a mortgage on it.

Your spouse is financially independent of you.

You both share all expenses relating to the family home and your dependent child.

You intend on holidaying in either Australia or Country Y with your family prior to your spouse moving to Country X for a number of days using your annual leave each year.

When returning to Australia for short visits you will stay in the family home.

Your spouse and child will visit you in Country X during the Australian school holidays.

Other family members and friends will visit you in Country X.

You and your spouse have an investment property in Country Y which is jointly owned.

You pay tax on the rental income in Country Y.

You have strong family ties in Country Y.

You own a share of a property in Country Z with your parent and sibling in which your parent lives.

You do not pay tax in Country X.

Neither you nor your spouse are eligible to contribute to the PSS or the CSS Commonwealth Super Funds.

Relevant legislative provisions

Income Tax Assessment Act section 6-1

Income Tax Assessment Act section 995-1

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 for tax purposes for the relevant income years as follows:

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

•                     You are not residing in Australia according to ordinary concepts.

•                     You left Australia to live and work in Country X.

•                     You will only return to Australia for a number of days each year to visit your family.

You do not meet the domicile test.

While you are a citizen of both Country Z and Australia the Commissioner is satisfied that you have a permanent place of abode outside Australia.

You rent accommodation in Country X in your own name, the accommodation is for your sole use, you have purchased household items to furnish the accommodation.

You do not meet the 183-day test.

You do not intend on being in Australia for more than 183 days in the relevant income years.

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

In summary, you are not a resident of Australia for tax purposes for the relevant income years.

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