Taxpayers may be eligible for tax offsets depending on their individual circumstances. Tax offsets reduce the amount of tax people need to pay.
We've recently updated the remote zone tax offset web content to make it easier for you and your clients to understand the eligibility requirements.
Determining eligibility
Taxpayers are generally eligible for the remote zone tax offset when they have resided in a relevant area of Australia for more than 183 days during the financial year in which they are claiming the offset. That is, when their usual place of residence is within a remote zone.
The 183 days does not have to be a continuous period of residency but must be within one financial year unless certain circumstances apply.
Where your client hasn’t resided within a remote zone for 183 days during the income year, they may still be able to claim the offset if their usual place of residence was in a remote zone for a continuous period of less than 5 years, and:
- they were unable to claim in the first year because it was not their residence for 183 days or more
- the total of the days they resided there in the first year and the current income year is 183 days or more
- the period they resided in a zone in the current income year includes the first day of the income year.
Fly-in-fly-out (FIFO) and offshore oil or gas rig workers are generally not eligible to claim the zone tax offset, unless their usual place of residence is within a remote zone for the required number of days.
Temporarily working in a zone, staying at an employer’s camp or provided accommodation does not mean the worker resided in the zone where the worker’s usual place of residence is outside a zone.
Australian zone list
We have a non-exhaustive list of locations that are within a remote zone. There may be other eligible locations that are not included on the list but are geographically within a remote zone.
If your client resides at a location that is geographically within a remote zone, it does not need to be on the list in order to claim the offset.
Claiming the offset – address details
Before lodging your client’s income tax return, confirm if there have been any changes to their residential and postal addresses. It’s important to ensure your clients keep their ATO record up to date with their current phone number, postal, residential and email address details.