Edited version of private advice

Authorisation Number: 1052389103882

Date of advice: 12 May 2025

Ruling

Subject: Residency

Question 1

Did you sever your Australian tax residency for the purposes of subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) when you left Australia on XX XXXX 20XX?

Answer 1

Yes.

This ruling applies for the following periods:

Year ended 30 June 20XX

The scheme commenced on:

XX XXXX 20XX

Relevant facts and circumstances

You were born in Australia.

You are only a citizen of Australia.

Your immediate family lives in Australia.

You do not have contact with your parent and siblings.

You live with your partner Person A and your pet.

You have no dependants.

You do not own real property in Australia.

You are a corporate trustee for Trust A. You are the sole shareholder, director and secretary. You are the 'Designated Beneficiary' of the Trust A.

The Trust A owns shares Company A and shares in Company B.

You are currently one of the directors of Company A.

On XX XXXX 20XX, you announced at the Company A's biannual 'Town Hall Meeting', that you and Person A planned to permanently relocate to Country A.

On XX XXXX 20XX, you established a Company C in Country A. Company C is a service-based consulting industry and can be performed remotely, and you will undertake the majority of this work from Country A.

On XX XXXX 20XX, you advised your rental agents that you would be terminating your Australian rental lease early.

On XX XXXX 20XX, you received an electronic visa which permitted your travel to Country A.

On XX XXXX 20XX, you ceased employment with Company A. However, you remained one of the directors. You will perform your director duties, while physically present in Country A.

On XX XXXX 20XX, you and Person A permanently moved to Country A.

Upon leaving Australia you:

•                     removed your name off the electoral role

•                     informed Medicare to be removed from cover

•                     cancelled your Australian telecommunication plan

•                     closed your Australian bank accounts

•                     cancelled your credit card

•                     sold your personal effects.

You organised transportation for your pet to come to Country A.

You entered a X-year lease for a rental property in Country A ending on XX XXXX 20XX.

On XX XXXX 20XX, you obtained a Country A resident visa for an initial period of X-years. This visa can be renewed indefinitely. Your Country A visa is sponsored by Company C.

You obtained a Resident Identity Card, issued on XX XXXX 20XX.

On XX XXXX 20XX, you obtained a local drivers license in Country A.

On XX XXXX 20XX, you opened a personal bank account in Country A.

You have another bank account in Country A, used for your business.

You applied to join a Professional's Organisation in Country A.

When travelling to Australia in the future, it will be as a visitor. You have no current plans to reside in Australia or stay for extended periods of time.

When you visit Australia in the future:

•                     you will stay with family or in temporary accommodation

•                     you may perform some work for Company C

•                     you may support Company A in your role as a director. This will be for events or to maintain Australian client relationships.

You have an Australian superannuation account.

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.

Assumptions

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.

You will not be physically present in Australia for 183 days or more during the income year ended 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

Detailed reasoning

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 XX XXXX 20XX, as follows:

•                     You will not be a resident of Australia according to the resides test. This is because from your departure date:

­        you will not be physically present in Australia for the majority of time

­        you terminated your rental agreement and do not own property in Australia

­        your intention is to reside overseas on a permanent basis

­        you have severed various links to Australia, such as phone, bank and credit accounts, removal from the electoral roll

­        your spouse and business will be in Country A, and

­        your assets will be in the Country A.

•                     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. This is because:

­        you do not own real property in Australia, and

­        your permanent place of abode will be outside of Australia.

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

­        your usual place of abode is outside Australia, and

­        you do not intend to take up residency in Australia.

•                     You do not fulfill the requirements of the Commonwealth Superannuation test.

Conclusion

You will not be a resident of Australia for tax purposes, from XX XXXX 20XX, for the year ended 30 June 20XX.

More information

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