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Edited version of your private ruling
Authorisation Number: 1012503579993
Ruling
Subject: Zone Tax Offset
Question
Does X Island lay within special zone A area for the purposes of the zone tax offset?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 2013
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You are seeking advice as to whether X Island is located in a zoned area for the purposes of the zone tax offset.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 79A
Reasons for decision
A zone tax offset is provided under subsection 79A(1) of the Income Tax Assessment Act 1936 for individuals who are residents of certain areas which are subject to uncongenial climatic conditions, are isolated, or where the cost of living is high. These areas are comprised of two zones - zone A and zone B. Zone A comprises those areas where the above factors are more pronounced whilst zone B comprises the less badly affected areas.
A location in zone A or zone B that is particularly remote may be considered to lie in a 'special zone' area. Special zone areas attract a higher rate of zone tax offset than the 'ordinary' area of zone A or zone B.
The Commissioner has released a list of towns falling into special areas in zones A and B on the ATO website.
X Island is listed in this document as lying in special zone A for the purposes of the zone tax offset.