Edited version of private advice

Authorisation Number: 1052383027956

Date of advice: 09 April 2025

Ruling

Subject: Temporary residency

Question 1

Are you a temporary resident of Australia for tax purposes pursuant to section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer 1

Yes

Question 2

Is your foreign source income and capital gains assessable in Australia?

Answer 2

No

Summary

You are a temporary resident of Australia for income tax purposes. Therefore, you are not assessable in Australia on foreign source income and capital gains.

This ruling applies for the following period:

30 June 20XX

The scheme commenced on:

01 July 20XX

Relevant facts and circumstances

You were born in Country A.

You are a citizen of Country A and you hold a Country A passport.

You are not an Australian permanent resident and you are not an Australian citizen.

Government Department of Home Affairs granted you a Country B (temporary) (subclass 461) visa on XX XXX 20XX. The visa states that you must not arrive after or stay longer than five years. The travel is granted for multiple entries.

You arrived in Australia on XX XXX 20XX and you are now living in Australia.

You do not have a permanent residence in Australia and fulfill your tax obligations in Country A.

You have strong financial and tax ties to Country A, including active Country A bank accounts, investments in Country A stock accounts, and ongoing Country A tax obligations. You hold multiple cryptocurrency wallets and engage in cryptocurrency transactions, including exchanging various digital assets for stablecoins.

Your legal partner, is a Country B citizen.

Your legal partner was granted a temporary resident visa class / subclass TY/444 on XX XXX 20XX. The period of stay is indefinite but allows a single entry only.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 768-910

Income Tax Assessment Act 1997 section 768-915

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

Reasons for decision

Temporary residency

Subsection 995-(1) of the Income Tax Assessment Act 1997 (ITAA 1997) provides the following definition of temporary resident (for tax purposes). You are a temporary resident if you:

•                hold a temporary visa granted under the Migration Act 1958

•                are not an Australian resident within the meaning of the Social Security Act 1991, and

•                do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991.

The Social Security Act 1991 defines an Australian resident as a person who resides in Australia and is an Australian citizen, the holder of a permanent visa, or a protected special category visa holder.

In your case, you are not an Australian resident within the meaning of the Social Security Act 1991 as you are not an Australian citizen, the holder of a permanent visa, or a protected special category visa holder.

In your case you are a temporary resident because:

•                you hold a temporary visa granted under the Migration Act 1958

•                you are not an Australian resident within the meaning of the Social Security Act 1991, and

•                You do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991.

You are a Temporary resident of Australia for taxation purposes.

Assessable income of a temporary resident

Section 768-910 of the ITAA 1997 provides that the assessable income of a temporary resident of Australia includes only income derived in Australia during the income year. This means that your income from foreign sources is not assessable in Australia as you are a temporary resident.

Section 768-915 of the ITAA 1997 provides that the capital gain or loss you make from a CGT event is disregarded if you are a temporary resident of Australia unless the relevant CGT asset is a direct or indirect interest in Australian real property.

As you are a temporary resident of Australia for taxation purposes for the relevant period, you can disregard capital gains or capital losses in respect of a CGT event in relation to your cryptocurrency trading.