About question T8

Are you entitled to claim a zone tax offset or an overseas forces tax offset? You may be able to claim a tax offset if you: lived or worked in a remote or isolated area of Australia, not including an offshore oil or gas rig, or served overseas as a member of the Australian Defence Force or a United Nations armed force.
No	Go to question T9 20% tax offset on net medical expenses over the threshold amount, or   return to main menu Tax return for individuals instructions.
Yes	Read below.

You need to know

Zone tax offset

Remote areas are classed as either zone A or zone B. There are also special areas within these zones. If you do not know which zone your area is in, see tables 14-16.

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

• 183 days or more during 2010-11, or
• 183 days or more during the period 1 July 2009 to 30 June 2011 (including at least one day in 2010-11) and you did not claim a zone tax offset in your 2010 tax return.

If you lived in a zone for less than 183 days in 2010-11, 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 after 1 July 2005 and:

• you were unable to claim in the first year because you were there less than 183 days, and
• the total of the days you were there in the first year and in 2010-11 is 183 or more.

Example

Gary lived in a remote area from 1 March 2006 to 30 September 2010, 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 122 days. However, he could carry forward these unused days to 2010-11. He now adds the number of days from 1 March 2006 to 30 June 2006 (122 days) and the number of days from 1 July 2010 to 30 September 2010 (92 days). As the total (214 days) is '183 days or more' over the two income years, Gary can claim the tax offset on his 2011 tax return.

Overseas forces tax offset

You may be eligible for an overseas forces tax offset if you served in a specified overseas locality as a member of the Australian Defence Force or a United Nations armed force in 2010-11 and income relating to that service was not specifically exempt from tax. Periods of service for which your income was 'exempt foreign employment income' are excluded in working out your eligibility for the tax offset.

Your employer will be able to advise you whether you served in a locality that qualifies for the overseas forces tax offset. You can also see which localities qualify for the overseas forces tax offset at our website, or phone 13 28 61.

To claim the full tax offset, you must have served in the overseas locality for 183 days or more in 2010-11. If your overseas service was less than 183 days, you may be able to claim part of the tax offset. Unlike the zone tax offset, you cannot carry forward any unused days from previous years to make up 183 days.

If you served in an overseas locality for less than 183 days, but the total number of days served in the overseas locality, when added to the number of days spent in one or more zones, is 183 days or more, you may still be entitled to claim the full overseas forces tax offset. If you served as a member of the Australian Defence Force, days spent in a zone must be defence force service.

Completing this item

How to work out your tax offset if your circumstances were simple

Step 1

Your tax offset is the relevant amount in table 1 below if:

• you lived or worked in only one zone or served in only one specified overseas locality for at least 183 days, as defined above and
• you are not eligible to claim any tax offsets at item T10 (parent, spouse's parent or invalid relative tax offset) and
• you did not claim a child-housekeeper tax offset (part B of question T1 Spouse (without dependent child or student), child-housekeeper or housekeeper tax offset) or housekeeper tax offset (part C of question T1) and
• your circumstances are shown in table 1 below.

Table 1: Tax offset amounts
Your circumstances	Zone A	Zone B	Special area	Overseas forces
You were single with no dependent child or student for all of 2010-11.	$338	$57	$1,173	$338
You are able to claim the maximum spouse (without child) tax offset ($2,286) at item T1.	$1,481	$514	$2,316	$1,481

If you cannot use table 1 you will need to work through How to work out your tax offset if your circumstances were more complex.

If you received a remote area allowance from Centrelink or the Department of Veterans' Affairs, or an equivalent amount was included in an exceptional circumstances relief payment, you must reduce the amount of your zone tax offset by this allowance.

Step 2

Write your tax offset amount less any remote area allowance at R item T8 on page 16 of your tax return. Do not show cents. Go to question T9 20% tax offset on net medical expenses over the threshold amount or return to main menu Tax return for individuals instructions.

How to work out your tax offset if your circumstances were more complex

You can either use our zone or overseas forces tax offset calculator on our website to work out your tax offset, or read below.

The zone or overseas forces tax offset is made up of two amounts: the fixed amount and a percentage of a base amount. Use the information from table 2 when you complete either table 11 or table 12 below.

Table 2
	Fixed amount	Percentage of base amount
Zone A	$338	50%
Zone B	$57	20%
Special area	$1,173	50%
Overseas forces	$338	50%

If you had no spouse, no dependent child or student, and you are not claiming for dependants (such as parent, spouse's parent, invalid relative, child-housekeeper or housekeeper) at any other tax offset item, you will not have a base amount. Go to Final calculation.

If you had a spouse or a dependent child or student, or you are entitled to any dependant tax offset, read on for instructions on how to work out your base amount.

Working out your base amount

The base amount is made up of tax offsets you may have claimed at other items on your tax return and notional tax offsets. A notional tax offset is an offset to which you would have been entitled if the tax offset was still allowable. Family tax benefit (FTB) and parental leave pay do not affect your entitlement to these notional tax offsets when calculating your zone or overseas tax offset.

Each of the tax offset components you work out will form part of your base amount at table 10.

Parent, spouse's parent or invalid relative tax offset component

Read this section only if you are eligible to claim a parent, spouse's parent or invalid relative tax offset. If you are not eligible to claim that tax offset, go to Notional tax offset for dependent children or students below.

If you are eligible to claim a parent, spouse's parent or invalid relative tax offset at item T10 (see question T10 Parent, spouse's parent or invalid relative), you will need to work out that amount then come back to this question. Write the amount you have claimed at item T10 at (a) table 10. Read on.

Notional tax offset for dependent children or students

Full-year claim

Your base amount will increase by the maximum amount shown in table 3 below for each student under 25 years old on 30 June 2011 in full-time education at a school, college or university, and for each child under 21 years on 30 June 2011 who, for the whole of 2010-11:

• was treated as an Australian resident
• was maintained by only you, and
• had an adjusted taxable income (ATI) of less than $286.

To calculate the ATI use the worksheets in Adjusted taxable income (ATI) for you and your dependants or the online Income tests calculator at www.ato.gov.au/calculators

If you did not have any dependent children or students, go to the Spouse tax offset component below.

Table 3
Dependant	Notional tax offset
Each student under 25 years old	$376
First non-student child under 21 years old	$376
Other non-student children under 21 years old	$282 for each child

If all of these requirements were met, add up the notional tax offset amount for each child or student and write the total at (c) table 10.

If two or more people contributed to the maintenance of a dependent child, each person can only claim a proportion of the notional tax offset.

If the requirements were met for only part of the year, or your child's or student's ATI for the period you are claiming this notional tax offset in respect of them was $286 or more, you may be able to claim a partial notional tax offset. Read on.

Part-year claim

You can claim only part of the notional tax offset for dependent children or students if:

• the child or student was treated as an Australian resident for only part of 2010-11
• the student was 21 years old or older and was in full-time education for only part of 2010-11
• the child or student was maintained by you for only part of 2010-11
• the child was 21 years old at 30 June 2011 and not in full-time education, or
• the student was 25 years old at 30 June 2011.

Use table 4 to work out the reduced notional tax offset for each child or student.

Table 4
Maximum notional tax offset for the child or student from table 3.	$	(a)
Number of days you maintained your child or student and your child or student remained a dependant.		(b)
Number of days in 2010-11.	365	(c)
Divide (b) by (c).	$	(d)
Multiply (d) by (a).	$	(e)

If the ATI of your child or student was less than $286 for the period you are claiming this notional tax offset in respect of them, transfer amount (e) above to (c) table 10.

If you had more than one eligible child or student and the ATI of each one was less than $286 for the period you are claiming this notional tax offset in respect of them, work out the amount for each child, add up all the amounts and write the total at (c) table 10.

If ATI was $286 or more for the period you maintained them

You cannot claim any amount of notional tax offset for your child or student if that child or student had an ATI equal to or greater than:

• the total of $282 plus $28.92 for each week you maintained them for a student under 25 years old or for the first child under 21 years old who is not a student, or
• the total of $282 plus $21.70 for each week you maintained them for any other child under 21 years old who is not a student.

If your child's or student's ATI for the period you are claiming this notional tax offset in respect of them was $286 or more but less than the limits shown, use table 5 to work out the notional tax offset.

Table 5
Notional tax offset for the child or student from table 3 or (e) table 4 for a part-year claim.	$	(a)
Your child's or student's ATI for the period you maintained them.	$	(b)
Income above which the notional tax offset begins to reduce.	$ 282	(c)
Take (c) away from (b).	$	(d)
Divide (d) by 4 because your tax offset is reduced by $1 for every $4 of ATI over $282. Do not show cents.	$	(e)
Take (e) away from (a). Do not show cents.	$	(f)

Transfer the amount at (f) above to (c) table 10. If you had more than one eligible child or student, work out the amount for each child or student, add up all the amounts and write the total at (c) table 10.

Spouse tax offset component

If you claimed a spouse tax offset at item T1 (see part A question T1) and did not have a dependent child or student for any part of the year, write that amount at (b) table 10. Go to Child-housekeeper tax offset component below.

Use table 6 to work out your notional spouse tax offset if either of the following applies to you:

• you had a spouse and you have written an amount of at least $1 at (c) table 10, notional tax offset for dependent children or students (in that case, use column 1 in table 6), or
• you were required to reduce your claim (or could not claim) at item T1 because your spouse during any period they were your spouse, or you, were eligible for family tax benefit (FTB) Part B or parental leave pay and you do not have an amount to write at (c) table 10 (in that case use column 2 in table 6).

Table 6
	Column 1 With eligible dependent child or student	Column 2 No eligible dependent child or student
Maximum annual notional dependent spouse tax offset and daily rate	$2,656 per year or $7.28 per day	$2,286 per year or $6.26 per day
Your maximum notional dependent spouse tax offset If you had a spouse for only part of the year, multiply the daily rate by the number of days you had a spouse.	$	$	(a)
Your spouse's ATI for the period you met the criteria to claim this tax offset, see Adjusted taxable income (ATI) for you and your dependants	$	$	(b)
Income above which tax offset begins to reduce	$ 282	$ 282	(c)
Take (c) away from (b).	$	$	(d)
Divide (d) by 4 because your tax offset is reduced by $1 for every $4 of ATI over $282. Do not show cents.	$	$	(e)
Take (e) away from (a).	$	$	(f)

The amount at (f) is your notional spouse tax offset for zone or overseas forces tax offset purposes. Transfer this amount to (b) table 10.

Child-housekeeper tax offset component

If you claimed a child-housekeeper tax offset at item T1, and you did not have to reduce your tax offset because your spouse during any period they were your spouse, or you, were eligible for family tax benefit (FTB) Part B or parental leave pay, write your child-housekeeper tax offset at (d) table 10.

If you were required to reduce your claim, or were not entitled to claim, for child-housekeeper tax offset because of FTB Part B or parental leave pay, use table 7.

Table 7
	Column 1 No other dependent child or student	Column 2 Another dependent child or student
Maximum annual allowable tax offset and daily rate	$1,863 per year or $5.10 per day	$2,232 per year or $6.12 per day
Your maximum tax offset allowable If you had a child-housekeeper for only part of the year, multiply the number of days in that part of the year by the daily rate from column 1 or column 2.	$	$	(a)
Your child-housekeeper's ATI for the period you meet the requirements to claim this tax offset, see Adjusted taxable income (ATI) for you and your dependants	$	$	(b)
Income above which tax offset begins to reduce	$ 282	$ 282	(c)
Take (c) away from (b) and divide by 4. Do not show cents.	$	$	(d)
Take (d) away from (a).	$	$	(e)

Transfer the amount at (e) above to (d) table 10 below.

Housekeeper tax offset component

If you claimed a housekeeper tax offset at item T1, and you did not have to reduce your tax offset because your spouse during any period they were your spouse, or you were eligible for family tax benefit (FTB) Part B or parental leave pay, write your housekeeper tax offset at (e) table 10.

If you were required to reduce your claim, or were not entitled to claim for a housekeeper tax offset because of FTB Part B or parental leave pay, read on.

Full-year claim

If you were entitled to the housekeeper tax offset for the full year (ignoring FTB Part B) write:

• $2,232 at (e) table 10 if you had a dependent child or student, or
• $1,863 at (e) table 10 if you did not have a dependent child or student.

Part-year claim

If you had a housekeeper for part of the year, use table 8.

Table 8
Amount of tax offset.	No dependent child or student	With dependent child or student
	$5.10 per day	$6.12 per day	(a)
Number of days you qualify for the housekeeper tax offset (ignoring FTB Part B and parental leave pay)			(b)
Multiply (a) by (b).	$	$	(c)

Transfer the amount at (c) above to (e) table 10.

Notional sole parent tax offset component

Read this section only if you were a sole parent at any time during the income year.

If you had sole care of a dependent child or student and you have written an amount of at least $1 at (c) table 10 (notional tax offset for dependent children or students), you may also be eligible for a notional sole parent tax offset.

Sole care means that you alone had full responsibility on a day-to-day basis for the upbringing, welfare and maintenance of a child or student. We do not consider you to have had sole care if you were living with a spouse (married or de facto) unless special circumstances exist.

Special circumstances

If you had a spouse (married or de facto) at any time during 2010-11, you are entitled to a notional sole parent tax offset only in special circumstances.

Generally, for special circumstances to exist, you must have been financially responsible for and have had sole care of the dependent child or student, without the support a spouse normally provides.

Examples of situations where special circumstances may arise:

• You were married or in a de facto relationship at any time during 2010-11 but during the year you separated from or were deserted by your spouse, and for the period that you will claim the sole parent tax offset you were not in a de facto relationship.
• Your spouse was in prison for a sentence of at least 12 months.
• Your spouse was medically certified as being permanently mentally incapable of taking part in caring for your child or student.

If you are unsure whether special circumstances applied, then phone 13 28 61.

Shared or joint custody after a relationship breakdown

There are times, after a relationship breakdown, such as a divorce or separation, where both parents share the custody of a child or student. If you can show that you had sole care of a dependent child or student for part of the year, you may be able to claim the notional tax offset for that part of the year. This means more than just having access visits with the child or student.

We consider you to have had sole care of the child for the part of the year up to the day the child turned 21 years old or the student turned 25 years old if the dependent child:

• was not receiving full-time education and turned 21 years old during 2010-11, or
• was a full-time student and turned 25 years old during 2010-11.

You are only entitled to claim the tax offset for that part of the year before the birthday.

If you had sole care of a child or student for the whole of 2010-11, write $1,607 at (f) in table 10 and add up your base amount.

Table 9: Notional sole parent tax offset - part-year claim
Number of days you had sole care of a child and were not entitled to a tax offset at question T1.	$	(a)
Multiply (a) by $4.40.	$	(b)

Transfer the amount at (b) above to (f) table 10 below.

Your base amount

Use this table to work out your base amount. These are the tax offset components for your dependants, if any.

Table 10: Base amount
Parent, spouse's parent or invalid relative, from item T10.	$	(a)
Spouse, from item T1 (part A question T1) or table 6.	$	(b)
Notional tax offset for dependent children or students, from table 3, table 4 or table 5.	$	(c)
Child-housekeeper, from item T1 (part B question T1) or table 7.	$	(d)
Housekeeper, from item T1 (part C question T1) or table 8.	$	(e)
Sole parent from table 9.	$	(f)
Add up all of these amounts.	$	(g)

The amount at (g) is your base amount.

Final calculation

Multiple locations

If you lived or worked in more than one zone, special area or specified overseas locality, and you were in one of them for 183 days or more, check table 2. If the fixed amount for that zone is higher than for the other zones where you were, use that fixed amount and table 11 to work out your tax offset. (This will give you the greatest benefit.)

Otherwise, go to category 2.

Example

Neil lived in zone A for 190 days and in zone B for 40 days. Table 2 shows that the fixed amount for zone A is higher than the zone B amount. Neil simply uses the zone A amount because this will give him the greater benefit. He ignores the time he spent in zone B.

Category 1

You were in only one zone or served only in specified overseas localities for at least 183 days.

Step 1

Complete table 11.

Table 11
Your fixed amount from table 2.	$	(a)
Your base amount from table 10.	$	(b)
Multiply (b) by the percentage figure from table 2.	$	(c)
Add (a) and (c).	$	(d)
Any remote area allowance you received.	$	(e)
Take (e) away from (d).	$	(f)

If you are claiming an overseas forces tax offset, the amount you can claim is (d). If you are claiming a zone tax offset, the amount you can claim is (f).

Step 2

Write your zone or overseas forces tax offset amount at R item T8 on your tax return. Do not show cents. Go to question T9 20% tax offset on net medical expenses over the threshold amount or return to main menu Tax return for individuals instructions.

Category 2

You lived or worked in more than one zone or you served in a specified overseas locality for less than 183 days or you served in a specified overseas locality and you were in one or more zones for at least 183 days.

You claim for the number of days in each eligible place divided by 183, to a maximum of 183 days for a year. Start with your zone that has the highest fixed amount in table 2. This will give you the greatest benefit.

Example 1: You spent 100 days in zone A and 120 days in zone B. You would claim 100   183 days for zone A and 83   183 days for zone B.

Example 2: You served 100 days in a specified overseas locality. You would claim 100   183 days.

Example 3: You served 100 days in an overseas locality as a member of the defence forces and served a further 83 days or more in a zone. You would claim the full overseas forces tax offset.

Example 4: You served 100 days in an overseas locality and 185 days in a special area. As the special area in table 2 shows the highest fixed amount and you use up the maximum 183 days for this, you would simply claim the full special area amount and ignore the 100 days in an overseas locality.

Step 1

Use table 12 to work out your claim for each zone, special area or overseas locality you were in.

Table 12
Your fixed amount from table 2.	$	(a)
Your base amount from table 10.	$	(b)
Multiply (b) by the percentage figure from table 2.	$	(c)
Add (a) and (c).	$	(d)
Number of days spent or served there to a maximum of 183 days (see above).	$	(e)
Multiply (d) by (e).	$	(f)
Divide (f) by 183. This is the amount you can claim.	$	(g)

Step 2

Once you have worked out the amount you can claim for each place you were in, add up all the amounts and then use table 13 below to work out your total tax offset.

Table 13
Total of the amounts you have worked out for each zone from (g) table 12.	$	(a)
Any remote area allowance or an equivalent amount included in an exceptional circumstances relief payment you received.	$	(b)
Take (b) away from (a). This is the amount you can claim.	$

If you served in a specified overseas locality for less than 183 days, the amount from (g) table 12 is the overseas forces tax offset you can claim.

If you served in a specified overseas locality and you were in one or more zones for at least 183 days, the various amounts for each zone or locality are given at (g) table 12. Add up all the amounts at (g) table 12 for each zone, special area or overseas locality. This is the overseas forces tax offset you can claim.

Step 3

Write your zone or overseas forces tax offset amount at R item T8 on page 16 of your tax return. Do not show cents. Go to T9 20% tax offset on net medical expenses over the threshold amount or return to main menu Tax return for individuals instructions.

Selected localities within the zones and special areas

Table 14: Zone A

Western Australia	Northern Territory
Bidyadanga (Lagrange)	Alice Springs*
Broome*	Batchelor
Carnarvon	Darwin
Dampier	Hermannsburg
Derby	Katherine*
Goldsworthy	Pine Creek
Karratha	Santa Teresa
Marble Bar	Tindal
Newman*
Pannawonica
Paraburdoo
Port Hedland*	Queensland
Roebourne	Camooweal
Shay Gap	Cloncurry
Tom Price*	Mount Isa*
Wittenoom

* Locations that are within 250 kilometres of these locations are also in the relevant zone.

Table 15: Zone B

Western Australia	Queensland
Boulder	Airlie Beach
Coolgardie	Atherton
Esperance	Augathella
Kalgoorlie*	Ayr
Kambalda	Barcaldine
Leonora	Blackall
Mullewa	Bowen
Norseman	Cairns
Northampton	Cardwell
Ravensthorpe	Charleville
Southern Cross	Charters Towers
	Clifton Beach
New South Wales	Collinsville
Bourke	Coppabella
Brewarrina	Cunnamulla
Broken Hill	Greenvale
Cobar	Home Hill
Collarenebri	Ingham
Lightning Ridge	Innisfail
Menindee	Longreach
Wilcannia	Mackay
	Mareeba
	Mossman
Tasmania	Port Douglas
Queenstown	Proserpine
Rosebery	Quilpie
	Sarina
	Tambo
South Australia	Townsville
Woomera	Tully
	Winton

* Locations that are within 250 kilometres of these locations are also in the relevant zone.

Selected localities within the zones and special areas (continued)

Table 16: Special areas

Western Australia	Queensland
Balladonia	Boulia
Deakin	Burketown
Denham	Cooktown
Eucla	Doomadgee
Exmouth	Georgetown
Fitzroy Crossing	Helen Vale
Halls Creek	Hughenden
Kununurra	Julia Creek
Laverton	Karumba
Leinster	Kowanyama
Madura	Normanton
Meekatharra	Stamford
Mount Magnet	Thargomindah
Onslow	Weipa
Rawlinna	Windorah
Turkey Creek (Bow River)
Wiluna
Wyndham	South Australia
	Amata Aboriginal Community
	Coober Pedy
Northern Territory	Cook
Alyangula	Innamincka
Angurugu	Leigh Creek
Borroloola	Marree
Elliott	Nullarbor
Galiwinku	Oodnadatta
Jabiru	Penong
Lajamanu (Hooker Creek)	Roxby Downs
Maningrida	Tarcoola
Milikapiti
Milingimbi
Nguiu	New South Wales
Ngukurr	White Cliffs
Nhulunbuy (Gove)
Numbulwar
Oenpelli	Islands and territories
Papunyah	Australian Antarctic Territory
Ramingining	Cocos (Keeling) Islands
Tennant Creek	Heard Island
Yirrkala	Lord Howe Island
Yuendumu	Macquarie Island
Yulara	McDonald Islands
	Norfolk Island
	Palm Isles Group
Tasmania
Furneaux Group Islands
King Island

There are also other locations that may be in a zone or special area. If you are unsure, phone 13 28 61.

Where to go next go to question T9 20% tax offset on net medical expenses over the threshold amount   return to main menu Tax return for individuals instructions   go back to question T7 Superannuation contributions on behalf of your spouse.