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Zone or overseas forces tax offset calculator improvements

Use the calculator to help determine your clients’ eligibility to claim the zone tax offset.

Published 18 May 2026

From 1 July 2026, enhancements to the remote zone component of the Zone or overseas forces tax offset calculator will be available.

These changes aim to support tax agents and taxpayers by making it easier to identify potential eligibility and accurately calculate the zone tax offset.

Improvements to the calculator will deliver a refreshed interface to improve usability. This will include:

  • automatic zone recognition through searchable locations
  • flexible data entry to support more complex living arrangements
  • simplified adjusted taxable income (ATI) inputs for users with dependants, whether their income is above or below the relevant thresholds.

For the 2026 income tax return – to support the launch of the updated calculator – if your client’s residential address points to a potential remote zone location, it will trigger a prompt in Online services for agents.

Tax agents will see the message:

‘Check your client’s eligibility using the Zone or overseas forces tax offset calculator. If they are eligible, claim the offset in their tax return.’

Note: these messages prompt potential eligibility only. They don’t automatically apply the offset. Agents must manually assess eligibility based on your client’s circumstances.

Check client addresses ahead of lodgment

With key lodgment dates coming up, we’re advising you of this new functionality as it will help support you when considering your clients’ circumstances.

We encourage you to check that your clients’ residential addresses are up to date and determine if they live in a remote zone.

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