Practice Statement Law Administration

PS LA 2002/6

The Australian zone list
  • This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Contents  
1. Using the Australian zone list
2. The escalation process
3. Implications of a change to the List
4. More information

This Practice Statement is an internal ATO document and is an instruction to ATO staff.

Taxpayers can rely on this Practice Statement to provide them with protection from interest and penalties in the following way. If a statement turns out to be incorrect and taxpayers underpay their tax as a result, they will not have to pay a penalty, nor will they have to pay interest on the underpayment provided they reasonably relied on this Practice Statement in good faith. However, even if they do not have to pay a penalty or interest, taxpayers will have to pay the correct amount of tax provided the time limits under the law allow it.

This Practice Statement provides guidance on the use and maintenance of the Australian zone list.

1. Using the Australian zone list

If you are considering a taxpayer's entitlement to the zone tax offset, you must use and follow the Australian zone list (the List), which ensures that we make consistent decisions about entitlements to the zone tax offset.

However, the List is not exhaustive and there is a continuous need to review and revise it.

If you identify any potential deficiencies or errors in the List, you must escalate a proposal around the deficiency or error.

2. The escalation process

Follow this process when escalating a proposal to change the List:

prepare a recommendation, which should include

-
an analysis of the relevant issues; in particular, the application of subsection 79A(3D) of the Income Tax Assessment Act 1936, guided by Taxation Ruling TR 94/27 Income tax: zone rebate for residents of isolated areas, and
-
supporting evidence, including copies of relevant maps marked with practicable routes and an explanation as to why any shorter route is not a practicable route, and

forward the recommendation to the Individuals and Intermediaries business line Public Advice and Guidance Unit for approval by an Excutive Level 2 officer.

3. Implications of a change to the List

Provided a taxpayer claims a zone tax offset in accordance with the List (as it was at the time of the claim), you should not reduce their claim if the List is subsequently changed.

However, you are able to amend the taxpayer's assessment to increase the zone tax offset if a change to the List provides the grounds to do so.

4. More information

The List is published on our website. See Australian zone list.

Amendment history

13 June 2024
Part Comment
Throughout Updated in line with current ATO style and accessibility requirements.

5 April 2023
Part Comment
Summary Remove the word 'proposed'.
More information Fix the broken link to PS LA 2008/14.

29 November 2017
Part Comment
Section 2 Update last dot point.
Contact officer Updated BSL details.

10 August 2015
Part Comment
All Updated to new LAPS format and style.

23 April 2014
Part Comment
Paragraph 7 Updated business line.
Paragraph 11 Link updated.
Contact officer details Updated.

3 May 2013
Part Comment
Paragraph 11 Minor amendment to wording and link
Contact officer details Updated.

20 July 2011
Part Comment
Paragraph 11 Link updated

15 April 2010
Part Comment
Paragraphs 7 & 10 Minor amendments to update team names and wording

16 September 2008
Part Comment
Contact officer details Updated.

7 April 2008
Part Comment
Contact officer details Updated.

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Date of Issue: 4 February 2002

Date of Effect: 4 February 2002

File 2001/016720; 2002/000774

Related Rulings/Determinations:
TR 94/27

Other References:
Australian zone list

Legislative References:
ITAA 1936 79A(3D)

Business Line:  IAI

ISSN: 2651-9526

PS LA 2002/6 history
  Date: Version:
  16 September 2008 Updated statement
  15 April 2010 Updated statement
  20 July 2011 Updated statement
  3 May 2013 Updated statement
  23 April 2014 Updated statement
  10 August 2015 Updated statement
  29 November 2017 Updated statement
You are here 13 June 2024 Updated statement
This practice statement was originally published on 4 February 2002. Versions published from 16 September 2008 are available electronically - refer to the online version of the practice statement. Versions published prior to this date are not available electronically. If needed, these can be requested by emailing TCNLawPublishingandPolicy@ato.gov.au.