1 Are you a resident of Australia for taxation purposes from when you relocated to Country B?
No. Summary Having considered your circumstances as a whole and the residency tests, it has been determined that you are not a resident of Australia for income tax purposes for the relevant ruling period. Question 2 Is the income you derive from your employment duties carried out in Country B assessable in Australia? Answer No. Summary Having considered your circumstances, it has been determined that the income you derive from your employment duties carried out in Country B are not assessable in Australia This private ruling applies for the following period: Year ending 30 June 20XX. The scheme commenced on: 1 July 20XX.
You were born in Country B in 19XX. You and your parents immigrated to Australia in 19XX. Your spouse was also born in Country B in 19XX. Your spouse immigrated to Australia in 19XX. While in Australia, you resided in the home of your father in law with your family. While in Australia you were employed by an Australian company until July 20XX, when you resigned from that position to move your family back to Country B. You unenrolled your children from the Australian school they were attending and have sold your car and furniture. In August 20XX, you moved your family back to Country B with the intention of relocating there permanently. Your Australian bank accounts will remain open, and your Australian investment property will continue to be rented out. You have enrolled your children in a school in Country B. You have signed a 2 year lease agreement for a property in Country B. You have obtained a driver's licence in Country B. You have obtained private health cover in Country B.
When you obtained citizenship in Australia, you renounced your citizenship in Country B as duel-citizenships were not available. You and your spouse are submitting an application to obtain citizenship in Country B. You have obtained employment in Country B as a contractor for an agency that services a company for Australia on a contract that is to end X January 20XX. Your employer will pay you in Australian dollars into your Australian bank account.
Income Tax Assessment Act section 6(1) Domicile Act 1982 International Tax Agreements Act 1953 Section 4 International Tax Agreements Act 1953 Section 5 Detailed reasoning For tax purposes, whether you are a resident of Australia is defined by subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936). The definition has four tests to determine your residency for income tax purposes. These tests are: • the resides test • the domicile test • the 183 day test, and • the Commonwealth superannuation fund test. It is sufficient for you to be a resident under one of these tests to be a resident for tax purposes. Our interpretation of the law in respect of residency is set out in Draft Taxation Ruling TR 2022/D2 Income tax: residency tests for individuals .