1 Are you a resident of Australia for taxation purposes for the relevant period?
No. Question 2 Are you a resident of Australia for taxation purposes from the relevant date? Answer Yes. This ruling applies for the following period : Year ended 30 June 20XX Year ended 30 June 20XX Year ended 30 June 20XX The scheme commenced on: 1 May 20XX
You were born in COUNTRY A. You are a dual citizen of Australia and COUNTRY A. You immigrated to Australia in XXXX and were granted citizenship in XXXX. You and your spouse were employed in Australia from XXXX to XXXX. In XXXX, you and your spouse moved to COUNTRY B and were living there from XXXX to XXXX. You and your spouse purchased a property in COUNTRY B in XXXX. This property had been your main residence for the entity of your time spent living in COUNTRY B. You were a resident of COUNTRY B for taxation purposes from XXXX through to XXXX. You did also work within COUNTRY C from XXXX to XXXX. You had no employment from XXXX to XXXX due to Covid19. Travel restrictions had been imposed within Australia from XXXX, making travel to Australia difficult. In XXXX you and your spouse purchased a property in Australia, as joint tenants. When you purchased the property in Australia you were a non-resident of Australia for taxation purposes. The property in Australia was rented out from XXXX to XXXX. In XXXX, you had retired from your employment in COUNTRY B and it was your intention to return to Australia. Travel restrictions were still in force at this time.
Your plans were put on hold by the Australian Government's imposed mandatory COVID travel restrictions with respect to inbound passenger flights from countries considered as high-risk, including COUNTRY B. To remain consistent with Australian Government advice you stayed in COUNTRY B, rather than risk travelling back to Australia At that time, you were confident, that based on Australian Government communications that you would be able to return to Australia before the end of XXXX. In XXXX, while still residing in COUNTRY B, the house on the land of your Australian property was demolished and you were seeking planning permission to commence a rebuild. On XXXX you applied to XXXX for assistance to make the return journey to Australia. In XXXX you were offered a flight to Australia from COUNTRY D, however borders between COUNTRY B and COUNTRY D were effectively closed with advice from Governments not to travel. You were later offered another flight from COUNTRY E which you declined given that you were based in COUNTRY C and overland travel with attendant risks was not considered viable. In XXXX, you commenced marketing your COUNTRY C property for sale. The property was sold in XXXX.
On XXXX, you returned to Australia. Your flight was timed to avoid the worst of the restrictions in Australia which were being progressively lifted. You arrived in Sydney and stayed for 14 days at your cost until Queensland border restrictions were relaxed. You and your spouse are not eligible to contribute to the PSS or the CSS super funds.
Income Tax Assessment Act 1997 section 995-1 Detailed reasoning Section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines an Australian resident for tax purposes as a person who is a resident of Australia for the purposes of the Income Tax Assessment Act 1936 (ITAA 1936). The terms 'resident' and 'resident of Australia', as applied to an individual, are defined in subsection 6(1) of the ITAA 1936. The definition offers four tests to ascertain whether each individual taxpayer is a resident of Australia for income tax purposes. These tests are: • the resides test (also referred to as the ordinary concepts test) • the domicile test • the 183-day test, and • the Commonwealth superannuation fund test. The resides test is the primary test for decidin