Edited version of private advice

Authorisation Number: 1052310862281

Date of advice: 27 September 2024

Ruling

Subject: Residency

Question 1

Did you cease to be a resident of Australia on XX XXXX 20YY when you relocated to Country A?

Summary

Yes. 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 after your departure on XX XXXX 20YY. You are not considered a resident for tax purposes of Australia after XX XXXX 20YY.

Question 2

As a foreign resident from XX XXXX 20YY, is the employment income you derived outside Australia non-assessable non-exempt income?

Summary

Yes. The source of your employment income is Country A as this is where the services are performed. As a foreign resident of Australia for tax purposes, you are not assessable in Australia on the income you earn while working in Country A.

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

The scheme commenced on:

XX XXXX 20YY

Relevant facts and circumstances

You are a Country B citizen.

On XX XXXX 20YY, you arrived in Australia on a temporary visa.

You were then employed by an Australian company as a casual employee.

You have been granted a Country A Visa which is currently valid until XX XXXX 20YY. You intend to extend this visa until at least 20YY to cover the entire duration of your employment.

On XX XXXX 20YY, you departed Australia and are expected to be living and working in Country A until 20YY.

You are employed by an Australian employer, performing your employment services exclusively in Country A.

You have not and will not complete your employment duties inside Australia from XX XXXX 20YY.

You undertake work on an infrastructure project outside of Australia in Country A.

You have long term accommodation available to you in Country A.

You are living in an apartment within an apartment complex in Country A.

You will not return to Australia to live and work.

In XXXX 20YY, you spent XX weeks in Australia for holidays but do not intend to spend any further time in Australia.

You have no spouse or dependants.

You have no Australian property or accommodation available to you in Australia.

You have no assets or personal belongings in Australia.

You have informed the Department of Home Affairs to cancel your Temporary Visa.

You have no social or sporting memberships in Australia.

You have shipped your personal possessions to Country A.

You are not an Australian resident within the meaning of the Social Security Act 1991.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 6(1)

Income Tax Assessment Act 1997 Subsection 6-5(3)

Income Tax Assessment Act 1997 Section 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 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 and 20YY income years

•         You do not fulfill the requirements of the Commonwealth Superannuation test.

The source of your employment income is Country A as this is where the services are performed. As a foreign resident of Australia for tax purposes, you are not assessable in Australia on the income you earn while working in Country A.

More information

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