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Are You Eligible for a Zone Tax Offset?


Nov 10, 2016


Kym Nitschke discusses how you can determine your eligibility for a tax offset depending on where you live and work.

What Is A Zone Tax Offset?

Australia has allowed a special tax break to citizens who need to save a little more to cope with the higher expense of a unique living situation. This is done through a Zone Tax Offset.

The Zone Tax Offset applies primarily to two groups of people:

– Australian workers who live in remote areas

– Australians who serve in forces overseas

There have been some recent changes to this provision you should be aware of. As of 1 July 2015, you must live in a zone to be eligible for the offset. This link to the ATO’s site provides more information on the law change.

How To Qualify

Eligibility for the Zone Tax Offset is determined by how much time you’ve spent living or working in a remote area. The parameters include:

– Living or working a minimum of 183 days in a remote area during the current income year

– Living or working a combined total of at least 183 days over the course of the present and the past income years (as long as it was less than 183 days in each year)

Which Zone Do You Live In?

There are three primary zones your tax offset is determined by:

Zone A – a small tax offset based upon a remote area with a reasonably large population

Zone B – a larger tax offset based upon a remote area with a smaller population

Special Zone Area – the largest tax offset based upon a remote area with a small population

Find out what you qualify for by visiting one of these online calculators.

Want to learn more about your tax benefits? Contact our team of experts at (08) 8379 9950 or send me an email.

– Kym Nitschke

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