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Edited version of private advice
Authorisation Number: 1051904135272
Date of advice: 4 November 2021
Ruling
Subject: Zone offset
Question
Are you entitled to a Zone offset?
Answer
Yes. Under section 79A of theIncome Tax Assessment Act 1936 (ITAA 1936), residents of prescribed areas of Australia, known as Zone A and Zone B, are entitled to a tax offset. The tax offset is in recognition of the disadvantages to which they are subject because of the uncongenial climatic conditions, isolation and the high cost of living in comparison with parts of Australia not included in those prescribed areas.
Schedule 2 of the ITAA 1936 defines the borders of these prescribed areas. Zone A is described as being:
All the islands forming part of Australia lying adjacent to the coastline of the portion of Australia described in paragraph 1.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You work as a lecturer for an educational institution.
You work from your home office.
You travel to the campus every few months for a week or so.
In the 20XX income year you spent xxx days working from your home.
In the 20XX income year you spent xxx days working from your home.
You do not receive a remote area allowance.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 79A
Income Tax Assessment Act 1936 Schedule 2