Edited version of private advice

Authorisation Number: 1052311705630

Date of advice: 9 October 2024

Ruling

Subject: Residency

Question

Are you a resident of Australia for tax purposes as defined by subsection 6(1) of the Income Tax Assessment Act 1936(ITAA 1936)?

Answer

Yes. Under the law, meeting a single test suffices for being deemed a tax resident. In your case, you have satisfied one of the tests. You and XXXXX are considered residents for tax purposes of Australia.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You and Person A are both Australian citizens, who were born in Australia.

You and Person A are not a citizen of any other countries.

You and Person A have lived in Australia for most of your life.

You and Person A are both each other's spouse.

You and Person A left Australia in X 20XX, with the intention of returning to Australia after XX months.

Due to COVID-19, you and Person A extended your stay in Country A by XX months each subsequent year (i.e., X 20XX, X 20XX, X 20XX, X 20XX).

At the time of this application for extension, you and Person A have been outside of Australia for over X years.

You and Person A stay in Country A as Australian citizens, which have the option to stay for as long as they like. The rest of your travel (i.e. Country B and future Country C travels) are on tourist visas.

You and Person A do not intend to apply for permanent residency in Australia in the future.

At this stage, you and Person A, intend to return to Australia in X 20XX.

Travel Cards

You and Person A state you are Australian citizens and stated you are Australian residents on Holiday.

Purpose of Previous travel

Your previous travel to Australia was for visiting family and leisure.

Your previous travel to Country C was for leisure.

Previous travel

Table 1: This table shows previous travel

Future travel plans

Table 2: This table shows future travel plans

You and Person A are both, still registered for Medicare at Person A Mother's place of residence.

You and Person A are both on the Australian Electoral Role (AER). You have both changed your addresses in Australia to Person A Mother's place of residence. You both still vote in elections via postal votes.

You and Person A's Australian private health insurance was suspended whilst you have been in Country A. The health insurance company have subsequently terminated your membership due to the length of time you have been overseas.

You and Person A intend to return to live in Australia after you travel abroad for the year of 20XX.

Accommodation

You and Person A do not own any property in Australia. Both of you have always rented.

You and Person A's last place of residence in Australia was in State A, where you rented the same property for a period of approximately X years.

You and Person A's have never purchased a house, either in Australia or overseas.

You and Person A currently rent a house in Country A. The rental agreement is set to expire on XX X 20XX when you will depart Country A.

You and Person A's, Australian address is in State A of Australia. You and Person A's possessions are stored at this address.

Assets

All your and Person A's possessions are still in storage in Australia.

You and Person A's hold bank accounts in Australia.

You and Person A have one bank account in Country A for convenience.

You and Person A hold cash, superannuation and shares in Australia.

You and Person A regularly make personal contributions to superannuation each income year. You both plan to make personal contributions in the 20XX income year.

You and Person A do not source any income in Country A. You and Person A have been living off our savings from Australia along with income from our sole trading consulting in Australia.

You and Person A own a motor vehicle together.

You and Person A have shipped your car to Country A from Australia in 20XX and will ship this back to Australia upon your return.

You and Person A continue to register the motor vehicle in Australia. Your motor vehicle was initially imported into Country A under a temporary vehicle import where you are required to maintain the motor vehicle registration in Australia.

You and Person A have not lodged any income tax returns in Country A.

Family and social connections

You and Person A have X dependents who are in Country A. Your dependants attend school in Country A. The rest of your family resides in Australia.

You and Person A's extended family live in Australia.

You and Person A obtained a Country A, drivers' license as it was mandatory after being in Country A for XX months.

Your X dependents are enrolled to start next year at a school in State A in Australia. You are planning to apply for online school to educate them while we travel in 20XX with Virtual School State A.

Employment and business

You and Person A work remotely in Country A for your Australian business.

You and Person A work as sub-contracting business consultants.

You and Person A's only source of income is from our Australian sole trader activities which come from X sources:

•         Contracting / consulting. This is all done remotely.

•         Sub-contracting / consulting for an Australian Consultant company who do work for Australian clients. This is all done remotely.

You and Person A do not earn income outside of Australia at all and have never applied for the equivalent of a tax number in Country A as you have never had the intention to work in Country A.

You have both chosen to live a nomad lifestyle and fund our lifestyle by having employment that is able to be done remotely at all times (i.e. working from home).

You and Person A pay insurance in Australia for indemnity and cyber protection for business activities.

Your sole trader setup means you pay PAYG each quarter and do the relevant BAS statements each month.

Superannuation

You and Person A have never been employed by the Commonwealth of Australia.

You and Person A are not a member of the Public Sector Superannuation Scheme (PSS) which was established under the Superannuation Act 19XX.

You and Person A are not eligible employees in respect of the Commonwealth Superannuation Scheme (CSS) which was established under the Superannuation Act 19XX.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 6(1)

Income Tax Assessment Act 1997 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 a resident of Australia for the relevant income years as follows:

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

•         You meet the domicile test because your domicile is in Australia, and the Commissioner is not 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.