Edited version of private advice

Authorisation Number: 1052309612126

Date of advice: 24 September 2024

Ruling

Subject: Residency

Question

Are you considered a resident for tax purposes for the 20YY-YY income year?

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 considered a resident for tax purposes of Australia.

This ruling applies for the following periods:

Year ended XX XXXX 20YY

The scheme commenced on:

XX XXXX 20YY

Relevant facts and circumstances

You were born in Country A.

You are a Country B citizen.

You stay with your child when visiting Australia.

You were in Australia for more than 183 days during the 20YY-YY income year.

You do not have any professional, social or sporting connections to Australia.

You will suspend or cancel your private health insurance policy when you depart.

You will return to your primary residence located in Country B.

Your family lives in Country B.

You have a Country B driver's licence.

You left your primary residence unoccupied during your travel to Australia.

You own the following assets located in Country B:

•         A commercial retail investment property under a lease.

•         A residential investment property under a lease.

•         Vacant land.

•         Various bank accounts

•         A portfolio of shares.

You own the following assets located in Australia:

•         Multiple joint bank accounts held with your child.

•         A residential property

You derive income from the following sources in Country B:

•         Interest from bank accounts.

•         Dividends from shares.

•         Rental income from commercial and residential investment properties.

You left your household and personal effects in Country B prior to your departure to Australia.

Your mailing address is your primary residence located in Country B.

You are not currently employed as you have retired.

When completing incoming and outgoing passenger cards you state you are a Country B citizen.

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 Subsection 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 for the income year ended 30 June 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. Although you were in Australia for 183 days or more during the 20YY income year, the Commissioner is satisfied that both:

­   your usual place of abode is outside Australia, and

­   you do not intend to take up residence in Australia.

•         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.