Private ruling: Zone offset
Date of advice: 4 November 2021
Published: January 2022
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a Zone offset? | A1: Yes. Under section 79A of the Income 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.

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