Tax Return:: Claiming the Zone Tax Offset
Hello, this is your tax and super specialist, P&C Tax Professionals.
Did you know that when you lodge your tax return in Australia, you can claim for the zone tax offset if you live in a remote/isolated area?
Today's discussion will be a brief overview of the zone offset and the eligibility criteria of the offset.
What is a "Zone Offset"?
A zone offset is a type of tax rebate provided by the Australian government to encourage people to live in the rural areas of Australia which are not as densely populated as some of the bigger cities. A tax offset helps you to reduce the amount of tax you have to pay (i.e. the tax payable on your taxable income). This is different to a tax deduction which can help raise your tax refund by reducing your taxable income by a certain amount.
If you live within the remote areas of Australia, depending on your location, the government grants you a minimum of $57 and a maximum of $1173 which you can claim upon applying for your tax return.
Who is eligible for the "Zone Offset"?
Obviously, not everyone who lives in a rural area is eligible for this tax rebate.
> First of all, you would need to check whether your usual place of residence actually falls under one of the categories as outlined in the Australian zone list.
> You must have lived in the area for at least 183 days during the given financial year. The number of days are not counted if you are only staying at the place for a short time as part of a business trip.
Which regions can receive the Zone Offset and how much can I receive?
If you have lived in an area that is included within the Australian zone list for more than 183 days during the financial year, depending on the zone the area falls under, the rates for individuals with no dependents are as follows:
Zone A: $338
Zone B: $57
Special Zone Area: $1,173
To check whether the area you are currently living in falls within the specified zones as set out by the ATO and if so, which zone it falls under, please follow the ATO link below for more information.
Zone Offset ATO link:
That's all for now but I hope this post has been beneficial for you in preparing for your future tax return.
Thank you!
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