Tax Laws Amendment (2006 Measures No. 1) Act 2006 (32 of 2006)

Schedule 1   Foreign source income exemptions for temporary residents

Part 1   Main amendments

Income Tax Assessment Act 1997

2   Subsection 995-1(1)

Insert:

temporary resident : you are a temporary resident if:

(a) you hold a temporary visa granted under the Migration Act 1958; and

(b) you are not an Australian resident within the meaning of the Social Security Act 1991; and

(c) your *spouse is not an Australian resident within the meaning of the Social Security Act 1991.

However, you are not a temporary resident if you have been an Australian resident (within the meaning of this Act), and any of paragraphs (a), (b) and (c) are not satisfied, at any time after the commencement of this definition.

Note: The tests in paragraphs (b) and (c) are applied to ensure that holders of temporary visas who nonetheless have a significant connection with Australia are not treated as temporary residents for the purposes of this Act.