Private ruling: Zone Tax Offset
Published: August 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Does X Island lay within special zone A area for the purposes of the zone tax offset? | A1: Yes.

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: Summary: 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.