Are you a temporary resident of Australia for taxation purposes pursuant to section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Yes. This ruling applies for the following periods : Year ended 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX The scheme commenced on: DD MM YY
You are a citizen of Country A and Country B. You are not a citizen of Australia. On DD MMYY, you entered Australia on a Temporary Skill Shortage (subclass 482) visa with your Country A passport. This visa allows you to work in Australia for up to 5 years. Your visa will expire on DD MM YY. Your spouse has accompanied you to Australia. Your spouse is not an Australian citizen or a permanent resident. Since you arrived in Australia, you and your spouse have rented an apartment with a one-year contract. You are working for Company X in Australia. Your role can be extended and does not have an end date. Your employer can apply for another visa to keep the employment going. You have a bank account in Country A and other assets overseas. You have 2 bank accounts in Australia and a superannuation account. You will return to Country A when your visa expires if you do not obtain another visa. Since arriving in Australia, you have travelled overseas a few times for short periods ranging from approximately a week to two weeks.
Income Tax Assessment Act 1997 section 995-1 Income Tax Assessment Act 1997 section 768-R
Under subsection 995-1(1) of the ITAA 1997, you are a temporary resident if: • you hold a temporary visa granted under the Migration Act 1958; and • you are not an Australian resident within the meaning of the Social Security Act 1991 ; and • your spouse is not an Australian resident within the meaning of the Social Security Act 1991 . The Social Security Act 1991 states an Australian resident is generally a person who resides in Australia and is either an Australian citizen, the holder of a permanent resident visa or a protected Special Category Visa holder from New Zealand. Subdivision 768-R of the ITAA 1997 provides that if you are a resident of Australia for taxation purposes and also meet the requirements to be a temporary resident of Australia, you will be subject to the following temporary resident rules: • Any income you earn from an overseas source will not be taxed in Australia except income earned from employment or services performed overseas while you are a temporary resident.
• Any capital gain you make from a capital gains tax event that relates to an asset that is not taxable Australian property will not be taxed in Australia. • Special rules apply to capital gains on shares and rights acquired under employee share schemes. Application to your circumstances In your case, you are resident of Australia for tax purpose because you satisfy the resides test and the 183-day test of residency. From the date of your arrival in Australia, neither you nor your spouse were Australian residents within the meaning of the Social Security Act 1991 as neither of you were an Australian citizen, the holder of a permanent visa or a protected Special Category Visa holder. You entered Australia with a temporary visa under the Migration Act 1958. As such, you are a temporary resident as defined in section 995-1 of the ITAA 1997 from the date of your arrival.