You may be eligible for a zone tax offset
We're contacting you because we identified that you live in a remote or isolated area of Australia. You appear to be eligible for the zone tax offset but didn't claim it in your tax return.
The zone tax offset reduces the tax you pay if you live in certain remote or isolated areas in Australia. It helps with the higher cost of living, isolation and other factors that come with living in these areas. We call these areas Zone A or Zone B, and there are also special areas within each zone.
We base eligibility for the zone tax offset on your usual place of residence. You’re not eligible if you work in a qualifying remote or isolated area but don't live there. For example, if you're a fly-in-fly-out worker.
We've amended your tax return
Using information from your previously lodged tax returns and other data available to us, we have amended your tax return where:
- you're eligible to receive the zone tax offset
- you haven't previously claimed it in your tax return
- your tax payable would be less for the income year.
You don't need to do anything to claim the amount for the income years we have contacted you about. We have applied the zone tax offset to your tax return and sent you an amended notice of assessment for each year we have amended.
Your amended notice of assessment may include interest on overpayments (IOP) if you paid more tax than you needed to. If you receive an IOP amount:
- we will pre-fill the amount when you prepare your tax return in the income year you receive it
- that amount is income for Centrelink purposes, and you may need to tell them about it.
Where the amendment to your tax return results in an amount owing to you, you will receive a refund. However, any refund may be used to reduce a debt you have with the government.
Claiming a zone tax offset in other income years
If we had enough information and you were eligible for the zone tax offset in prior income years where you didn't claim it, we may have also amended those tax returns.
If you don't receive an amended assessment letter from us but you think you are eligible, you can use our Zone or overseas forces tax offsets calculatorThis link opens in a new window and amend your own tax return. You generally have up to 2 years from the day you lodged your tax return to request an amendment.
Claiming a zone tax offset in future
For 2024–25 and future income years, check your eligibility and claim the offset in your tax return when you lodge.
Helping others in your community
You can help others in your community to consider their eligibility for the zone tax offset.
The easiest way to work out eligibility and the amount is to use our Zone or overseas forces tax offset calculatorThis link opens in a new window.
To receive the zone tax offset, you must:
- receive assessable income that you pay tax on
- lodge a tax return.
If you have outstanding tax returns, you need to lodge them to claim the zone tax offset.
Your spouse's eligibility
If your spouse is eligible for the zone tax offset but their tax return hasn’t been amended yet, it could be amended in the future.
However, their circumstances could be different to yours. We may not amend their tax return for a number of reasons, including:
- they have not lodged a tax return
- they have already claimed the zone tax offset
- claiming the zone tax offset will not benefit them – that is, they didn't pay tax.
Your spouse can check their eligibility for the zone tax offset.
Tax agents and claiming a zone tax offset
You don’t need to use a tax agent to claim the zone tax offset. You can use our Zone or overseas forces tax offset calculatorThis link opens in a new window to help you work out how much you can claim if you're eligible.
Amount of a zone tax offset
The minimum (base) amount of zone tax offset will depend on your usual place of residence and the zone you live in.
Other things that may change how much you get include:
- how many children under 21 years old or full-time students under 25 years old you look after
- if you're a single parent
- if you receive an invalid or invalid carer tax offset
- if you receive a remote area allowance.
The easiest way to work out your eligibility and how much your offset should be is to use our Zone or overseas forces tax offset calculatorThis link opens in a new window.
|
Zones |
Base amount |
|---|---|
|
Special area A or B |
$1,173 |
|
Zone A |
$338 |
|
Zone B |
$57 |
Incorrect offset amount
If you think we haven’t calculated your zone tax offset correctly, you can use our Zone or overseas forces tax offset calculatorThis link opens in a new window to check.
If the calculator shows a higher amount than we included, you can lodge an amendment online.
Effect of a zone tax offset on Centrelink payments
The zone tax offset is not assessable income for Centrelink purposes.
Centrelink remote area allowance and a zone tax offset
The zone tax offset amount you can claim is reduced by any amount paid to you as a remote area allowance from Centrelink.
Frequently asked questions
You can find answers to some of our most frequently asked questions.
What will happen next year?
We don't plan to automatically amend tax returns in future years.
If you think you will be eligible for the zone tax offset in future years, see Claiming the zone tax offset in future years.
Why did my neighbour get it but I didn't?
There are 2 different situations that explain why this may have happened.
If you have lodged your tax returns:
We looked at the accounts and circumstances of each person, and only added the zone tax offset if it would have made a difference for that person.
If you think you will be eligible for the zone tax offset in future years, see Claiming the zone tax offset in future years.
If you don’t lodge tax returns:
We haven't hasn’t added the zone tax offset for people who haven’t lodged tax returns.
If you think we made a mistake, you can use the Zone or overseas forces tax offset calculator to see if you're eligible and then make an amendment online.
You haven’t paid me enough for all of my children
If you think we haven't calculated your zone tax offset correctly, you can use the calculator to check.
If the calculator shows a higher amount than what we have added, you can lodge an amendment online.
I got a refund letter, but I didn’t get any money
If you have previously used a tax agent to lodge your tax return, the refund may have been issued to their bank account.
If you don't have any financial details on file with the ATO, you can add these yourself via myGov, or contact us to speak to a customer services representative. If you had an existing debt with the ATO, or with another agency, your refund may have been offset to pay off this debt. You can check your account in myGov for these details.