Edited version of private advice

Authorisation Number: 1052364573840

Date of advice: 26 February 2025

Ruling

Subject: Residency

Question

Are you a resident of Australia for tax purposes?

Answer

No. After considering your circumstances as a whole and the residence tests, you are not a resident of Australia for tax purposes.

This ruling applies for the following periods:

Year ending 20XX

Year ending 20XX

Year ending 20XX

Year ending 20XX

Year ending 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were born in Australia and are a citizen of Australia.

On XX XXX 20XX you departed Australia to go to country X to live and work.

On departure your household effects were either sold, disposed of, or gifted to family members.

You continue to have no intention to return to Australia to live.

You have spent more than 7 years in country X.

You have a resident permit in country X which is renewed annually.

Your intent is to apply for permanent residency in country X. To do this you must have lived and worked in country X for 8 years.

You do not own or lease any property in Australia.

You visit Australia on short trips and temporarily stay with family. You do not have any clothes or effects at these properties and bring your items with you.

You have resided in 2 rental apartments in country X since you arrived 7 years ago. Your current rented accommodation is at (address) in country X. It is for your exclusive use and you pay for the rent, electricity, gas, water, internet, and furniture. Your employer is not liable for these costs and they are not listed on any contracts.

You have worked for the same employer, (employer name) in country X for the past 7 years. Your contract is renewed annually.

You have a bank account in country X and health insurance.

You have a bank account and shares in Australia.

You have a spouse in country X who is a citizen of that country. Your spouse is not a citizen or resident of any other country.

You have no social and sporting connections in Australia.

You have social and sporting connections in country X.

You have not been in Australia for more than 183 days in any financial year since leaving Australia.

You are not a member of the Public Superannuation Scheme (PSS) or the Commonwealth Superannuation Scheme (CSS).

Assumption

You will not be in Australia for 183 days or more in the 20XX to 20XX income years.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 995-1(1)

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 period XX XXX 20XX to XX XXX 20XX, as follows:

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

•                     You are not a resident under the domicile

-                    your domicile of origin is Australia and you have not acquired a domicile of choice in country X as you permit is renewed annually

-                    however, the Commissioner is satisfied your permanent place of abode is outside Australia

-                    you have definitely abandoned, in a permanent way, living in Australia and you are living in a town, city, region or country in a permanent way

•                     You are not a resident the 183 day test because you will not be in Australia for 183 days or more during any income year this private ruling applies to

•                     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.