| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012500269338
Ruling
Subject: Zone tax offset
Question
Are you entitled to claim a zone tax offset where you spend more than one-half of the income year in remote area zones?
Answer
Yes.
This ruling applies for the following periods
Year ended 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
Year ending 30 June 2016
Year ending 30 June 2017
Year ending 30 June 2018
The scheme commences on
1 July 2012
Relevant facts and circumstances
You fly to various mining locations.
As part of your employment you are required to fly to various zone locations on a daily basis. You normally have a short stop over period of 30 minutes; however, there are times when you are required to stop all day at different mine sites.
You do not maintain a home in any of the zone locations that you fly to.
You were present in the remote area zones for more that 182 days during the financial year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 79A(1)
Income Tax Assessment Act 1936 Subsection 79A(3B)
Reasons for decision
A zone tax offset is provided under subsection 79A (1) of the Income Tax Assessment Act 1936 (ITAA 1936) for individuals who reside or stay in certain areas which are subject to uncongenial climatic conditions, are isolated, or where the cost of living is high. These areas are classed as either zone A or zone B. There are also special areas within these zones.
One of the tests for eligibility is that you were actually in the relevant area for more than one-half of the income year.
In your case, you fly to various remote locations around Australia and you normally have a short stopover period of 30 minutes, however, there are times where you are required to stop there all day.
Taxation Ruling TR 94/27 states that in determining whether a person has resided or actually been in the relevant area for the required number of days, we consider that, for the purposes of the residence test in subsection 79A(3B) of the ITAA 1936, the word 'day' includes any one or more parts of a calendar day.
Therefore as long as you spend more than one-half of an income year in remote zone locations you will be eligible to claim the zone tax offset.