Edited version of private advice

Authorisation Number: 1052340984241

Date of advice: 10 December 2024

Ruling

Subject: Residency

Question 1

Are you a resident of Australia for taxation purposes?

Answer 1

No.

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 XXXX

Relevant facts and circumstances

You were born in Country Z.

You are a citizen of Country Y, Country Z, and Country V.

You are retired and travel the world.

You have a home base in Country Y which you share with your partner.

You leave your permanent and personal items at the property you share with your partner in Country Y.

You return to this property and your partner in Country Y.

Your partner does not travel with you due to their business obligations in Country Y.

You have not been back to Country Y for a number of months.

You have visited Australia on a number of occasions entering Australia on visitor visas.

Previously when you have visited Australia you have stayed in short term accommodation.

You originally came to Australia as a visitor several years ago and travelled around Australia for several weeks.

You returned to Australia in the following year to attend a course of education.

During this visit you obtained a TFN and a driver's license.

You returned to Country Y a few months later.

You returned to Australia on a visa as a tourist to visit friends.

You left Australia and went to the Country W then Country X in the following month.

At the end of the year, you returned to Australia.

You rented accommodation for several months during this trip rather than short term accommodation as it was more affordable.

Recently you departed Australia for Country X.

You last entered Australia a couple of months ago on a visa which allows you to be in Australia for a number of months as a tourist.

You enjoy visiting Australia and have a group of friends in Australia that you catch up with.

You have leased a property for x months in Australia.

If you are a non-resident for tax purposes you intend on staying in Australia and will extend your lease for several months.

You do not intend on remaining in Australia on a permanent basis.

You have opened a bank account in Australia.

You opened fixed term deposit accounts and a brokerage investment account in Australia.

You will lodge a tax return as a non-resident in Australia in the relevant income year to declare your Australian sourced income.

You currently file and pay taxes each year in Country Y and maintain several active Country Y financial/bank accounts.

You maintain an additional travel insurance policy while you are indefinitely outside of Country Y.

You were in Australia for more than 183 days in the XXXX income year.

You did not derive any Australian sourced income in the XXXX income year.

You are not eligible to contribute to the PSS or the CSS Commonwealth Superannuation Funds.

Assumption

You will not be in Australia for more than 183 days in the 20XX income year.

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 relevant income years as follows.

You are not a resident of Australia according to the resides test as:

•                     you are retired and travelling the world

•                     you are in Australia as a tourist on a visitor visa seeing friends

•                     you have travelled to other countries in the XXXX income year

•                     your home is in Country Y where you live with your partner

•                     you leave your permanent and personal items at the property you share with your partner in Country Y

•                     you are a tax resident of Country Y and actively take steps to not be a tax resident of any other country.

You did not meet the domicile test as:

•                     you do not have an Australian domicile

•                     you cannot remain permanently in Australia.

You do not meet the 183-day test for the following reasons:

•                     although you were in Australia for more than 183 days in the XXXX income year and will be in Australia for more than 183 days in the XXXX income year, we consider you do not intend on taking up residency in Australia and your usual place of abode is in Country Y

•                     you do not intend to be in Australia for more than 183 days in the XXXX income year.

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.