Edited version of private advice

Authorisation number: 1052340175540

Date of advice: 12 December 2024

Ruling

Subject: Residency

Question

Were you a resident of Australia for taxation purposes in the relevant income year?

Answer

No.

This ruling applies for the following period:

Year ended 30 June 20YY

The scheme commenced on:

1 July 20YY

Relevant facts and circumstances

You were born in the Country Z.

You are a citizen of both Australia and the Country Z.

You and your family left Australia a couple of years ago to return to the Country Z.

You sold your home in Australia prior to moving to the Country Z.

You worked remotely in the Country Z for your Australian employers.

It was your intention to stay in the Country Z for several years before returning to Australia.

Initially you and your family rented accommodation in the Country Z when arriving.

You had a house built in the Country Z and you, and your family moved into it.

You returned to Australia recently as you lost your job.

Your family accompanied you back to Australia.

Your family went back to the Country Z a few months later to live.

You will visit your family once a year and your family will come to Australia to visit you in school holidays.

Your employment changed from an employee to a sub-consultancy agreement for your employer.

Your employer did not request an ABN or withhold tax from payments.

Your income from your employer is considered PSI income because more than 50% of your income from your employer is for your personal efforts, skills and expertise as an XXXXX.

You have earned more than $75,000 in PSI in the relevant financial year.

You purchased a block of land to build an investment property after initially left Australia.

Construction was completed a few weeks after you returned to Australia to live and is currently being advertised for lease.

You have been renting a property since returning to Australia.

You are working full-time.

If work permits you will go back to the Country Z in the future to live.

You did not pay tax on your Australian sourced income in the Country Z.

You were not a resident of the Country Z for taxation purposes.

You or your spouse are not eligible to contribute to the PSS or the CSS super funds.

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 not a resident of Australia for tax purposes for the 20YY income year as follows:

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

•                     You did not meet the domicile test.

•                     You did not meet the 183-day test.

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

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

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