From 1 July 2006, if you are a temporary resident at the end of an income year the FIF provisions will not apply to an interest you hold in a FIF or FLP for the notional accounting period that ends in that income year, in accordance with section 768-965 of the ITAA 1997.
You will qualify as a temporary resident under the definition of that term in subsection 995-1(1) of the ITAA 1997 if you meet all of the following conditions:
- you hold a temporary visa granted under the Migration Act 1958
- you are not an Australian resident within the meaning of the Social Security Act 1991, and
- your spouse (if applicable) is not an Australian resident within the meaning of the Social Security Act 1991.
However, if you are an Australian resident for tax purposes but not a temporary resident on or after 6 April 2006 you will not be entitled to the temporary resident exemptions from that time, even if you later hold a temporary visa.
For further information, see the electronic publications Foreign income exemption for temporary residents - introduction or Foreign income exemption for temporary residents - general questions. |