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ZONE TAX OFFSET

30 June 2017

From 1 July 2015 the zone tax offset is to exclude "fly in fly out" and "drive in drive out" workers where their normal residence is not within a "zone".

 

SPECIAL ZONE A OR B - $1,173 + 50% of the rebates or notional rebates to which a taxpayer is entitled.

ORDINARY ZONE A - $338 + 50% of the rebates or notional rebates to which a taxpayer is entitled.

ORDINARY ZONE B  - $57 + 20% of the rebates or notional rebates to which a taxpayer is entitled.

OVERSEAS DEFENCE FORCE REBATE - $338 + 50% of the rebates or notional rebates to which a taxpayer is entitled.

REBATES OR NOTIONAL REBATES

Dependants who are unable to work $2,535 x percentage of days maintained by only you and ATI < $10,422.

Sole Parent $1,607 x percentage of days maintained by only you.

Child or Student $376 + $282 after the 1st x percentage of days maintained by only you and ATI < $1,786.

·         To qualify for the zone tax offset, you must have lived or worked in a remote area (not necessarily continuously) for:

o    183 days or more during the current income year; or

o    183 days or more in total during the current and previous income years - but less than 183 days in the current year and less than 183 days in the previous income year - and you did not claim a zone tax offset in your previous year's tax return.

If you lived in a zone for less than 183 days in the current income year, you may still be able to claim a tax offset as long as you lived in a zone for a continuous period of less than five years and:

o    you were unable to claim in the first year because you lived there less than 183 days; and

o    the total of the days you lived there in the first year and in the current year is 183 or more.

Remote zones

Remote areas are classed as either zone A or zone B. There are also special areas within these zones.

Australian zone list (XLS, 1.5MB)

End of find out more  

Example

Gary lived in a remote area from 1 March 2008 to 30 September 2012 - a continuous period of less than five years. He couldn't claim a zone tax offset for the first year because he lived there for only 121 days. However, he could carry forward these unused days to 2012-13.

He now adds the number of days from 1 March 2008 to 30 June 2008 (121 days) and the number of days from 1 July 2012 to 30 September 2012 (91 days). As the total (212 days) is '183 or more days' over the two income years, Gary can claim the tax offset on his 2013 tax return.

·         Zone or overseas forces tax offset calculator

You may be able to claim the tax offset if you have:

o    lived or worked in a remote or isolated area of Australia, not including an offshore oil or gas rig (a remote area), or

o    served overseas as a member of the Australian Defence Force (declared non-warlike service) or a United Nations armed force and the income relating to that service is not specifically exempt from tax.

If you qualify for both a zone tax offset and an overseas forces tax offset, you can claim only one of them. Claim the one that gives you the higher tax offset.

You may also be eligible to claim additional dependant tax offsets at this item for:

o    your or your spouse's parent $1,607

o    your or your spouse's invalid child, brother or sister $376 + $282 for each child after the 1st if ATI < $1,786

o    your child-housekeeper

o    your housekeeper.

 

 


DISCLAIMER
The information provided in the above documents is not intended to be, nor should it be construed as tax advice. Any specific recommendation for a client can only be done after their individual circumstances have been determined by David Douglas Accountants.

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