Edited version of private advice

Authorisation Number: 1052388352518

Date of advice: 23 April 2025

Ruling

Subject: Residency

Question 1

Are you a resident of Australia for tax purposes after the time of your departure from Australia in or around XXXX 20XX?

Answer 1

No

This ruling applies for the following periods:

Year ended 30 June XX

Year ended 30 June XX

Year ended 30 June XX

The scheme commenced on:

XX XXXX 20XX

Relevant facts and circumstances

You were born in Australia.

You are only a citizen of Australia.

Your parents and siblings live in Australia.

You have a spouse, X dependent children and an infant.

On XX XXXX 20XX, you and your spouse jointly purchased property in Australia.

You have a draft agency agreement for the proposed selling of the property. The property is currently not advertised for sale.

You do not have employment in Australia, and you will not be engaging in any paid activities, or employment, connected with Australia or an Australian employer for the period of the scheme.

On XX XXXX 20XX, you solely purchased an off-the-plan property in Country A. Your intention is to move into the property with your family when it is completed. Completion of the property construction and ability to occupy it will not occur until XX XXXX 20XX.

On XX XXXX 20XX, you were issued a residency identity card by Country A, which is valid until XX XXXX 20XX.

You and your spouse have been granted Country A permanent residency status and have been issued with the requisite identification documents.

You and your family are the holders of visas, which allow you to remain in the Country A for X years. The visa must be renewed before its expiry.

The primary condition of maintaining the visa and permanent resident status in Country A under these arrangements, is the physical presence as the 'home' of the individual, and ownership of real property in Country A.

This visa does not have a connection to your employment status.

Presently, you have no employment contracts or agreements with an employer in Country A.

On XX XXXX 20XX, you will travel to Country A on a one-way ticket for the purpose of business development and networking. If the trip is successful you will remain in Country A permanently and your family will travel to Country A in or around XXXX 20XX.

You have stated that, if you gain employment in Country A, you will not perform any work in Australia or connected with an Australian employer.

If your trip is unsuccessful you will return to Australia before you and your family permanently depart on or around XXXX 20XX to permanently reside in Country A.

Between XX XXXX 20XX to XXXX 20XX, you plan to have your children travel to Country A, to begin acclimating to the area before permanently making the move in XXXX.

For the period in Country A before completion of the property, you and your family will be residing in the villa of a close friend.

You will furnish the villa yourself and have its exclusive use.

No formal lease is expected to be entered into for the villa.

You have enrolled your oldest children into school in Country A.

Upon your departure from Australia, you will:

•                Cancel your Australian memberships and subscriptions.

•                Inform the Australian Electoral Commission and Medicare that you are departing

•                Cancel or suspend your private health insurance.

•                Advise any Australian financial institutions including any Australian companies with whom you have investments with that you are a foreign resident

•                Maintain your Australian bank account.

•                Have your mail sent to your parents, then forwarded to you in Country A.

You will not be physically present in Australia for 183 days or more during the income year ended 30 June 20XX, 20XX, or 20XX.

When visiting Australia in the future:

•                It will not be for work.

•                You will stay in hotels or with family.

You and your spouse are not a member of the Public Sector Superannuation Scheme (PSS) which was established under the Superannuation Act 1990.

You and your spouse are not an eligible employee in respect of the Commonwealth Superannuation Scheme (CSS) which was established under the Superannuation Act 1976.

Assumption

For the purpose of this ruling, it is assumed that the facts of your situation as outlined above will not materially change during the ruling period and will continue until 30 June 20XX.

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 will not be a resident of Australia from your departure date in or around August 2025, as follows:

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

•                You do not meet the domicile test because although your domicile is in Australia, the Commissioner is satisfied that your permanent place of abode will be outside of Australia after your departure date.

•                You will not meet the 183-day test because you will not be in Australia for 183 days or more during the 20XX, 20XX and 20XX income years, and the Commissioner is satisfied that both:

°                your usual place of abode is outside Australia, and

°                you do not intend to take up residence in Australia.

•                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.