Taxpayer not resident of Australia: Decision Impact Statement on Re The Engineering Manager
03 Mar 2015
On 2 March 2015 the ATO issued a Decision Impact Statement on the decision of the Administrative Appeals Tribunal in Re The Engineering Manager and FCT  AATA 969. In that case, the Tribunal held that the taxpayer, who worked as a lead instrumentation engineer and manager in Oman for a multinational company in the oil and gas industry from 4 January 2010 to 29 April 2011, when he returned to live with his family in Perth, was not a resident of Australia for the whole of the year ended 30 June 2011.
In the ATO’s view, the Tribunal approached the question of residency by weighing the facts and circumstances it considered relevant. This is consistent with the ATO’s approach to issues of residency, including the ATO view expressed in IT 2650.
The ATO considers that the AAT’s decision creates no new law in this area.
Whether a person who leaves Australia to live and work overseas for a period of time remains an Australian resident for income tax purposes will depend on their particular circumstances. More information can be found in the International Tax for Individuals section of the ATO website.