PART III
-
LIABILITY TO TAXATION
Division 3
-
Deductions
History
Div 3 heading inserted by No 172 of 1978.
Subdivision A
-
General
SECTION 79A
REBATES FOR RESIDENTS OF ISOLATED AREAS
79A(1)
For the purpose of granting to residents of the prescribed area an income tax concession in recognition of the disadvantages to which they are subject because of the uncongenial climatic conditions, isolation and high cost of living in Zone A and, to a lesser extent, in Zone B, in comparison with parts of Australia not included in the prescribed area, a taxpayer (not being a company or a taxpayer in the capacity of a trustee) who is a resident of the prescribed area in the year of income is entitled, in the taxpayer
'
s assessment in respect of income of that year of income, to a rebate of tax ascertained in accordance with this section.
History
S 79A(1) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
S 79A(1) amended by No 29 of 1982, No 117 of 1975, No 51 of 1973, No 94 of 1961 and No 62 of 1955.
79A(2)
Subject to subsections (2A) and
79B(4)
, the rebate allowable under this section in the assessment of a taxpayer in respect of income of the year of income is:
(a)
if the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income
-
an amount equal to the sum of:
(i)
$1,173; and
(ii)
an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(b)
if the taxpayer is a resident of Zone A (but not of the special area in Zone A or of the special area in Zone B) in the year of income
-
an amount equal to the sum of:
(i)
$338; and
(ii)
an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(c)
if the taxpayer is a resident of Zone B (but not of Zone A or of the special area in Zone B) in the year of income
-
an amount equal to the sum of:
(i)
$57; and
(ii)
an amount equal to 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(d)
-
(e)
(Repealed by No 70 of 2015)
(f)
in any other case
-
such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this section if paragraph (a) had applied to the taxpayer in respect of the year of income and not less than the amount of rebate to which the taxpayer would have been so entitled if paragraph (c) had so applied to the taxpayer.
History
S 79A(2) amended by No 70 of 2015, s 3 and Sch 2 items 4 and 5, by substituting para (a), (b) and (c) for para (a), (d) and (e), and
"
paragraph (c)
"
for
"
paragraph (e)
"
in para (f), applicable in relation to assessments for the 2014-15 income year and later income years. Para (a), (d) and (e) formerly read:
(a)
if the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income
-
an amount equal to the sum of:
(i)
$1,173 increased by 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; and
(ii)
if the taxpayer was not entitled to a rebate under section
159J
in respect of a dependant included in class 1 in the table in subsection
159J(2)
or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection
159J(2)
-
the dependent spouse relevant rebate amount in relation to the taxpayer in relation to the income year; or
(b)
-
(c)
(Omitted by No 4 of 1991)
(d)
if the taxpayer is a resident of Zone A in the year of income but has not resided or actually been in the special area in Zone A or the special area in Zone B during any part of the year of income
-
an amount equal to the sum of:
(i)
$338 increased by 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; and
(ii)
if the taxpayer was not entitled to a rebate under section
159J
in respect of a dependant included in class 1 in the table in subsection
159J(2)
or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection
159J(2)
-
the dependent spouse relevant rebate amount in relation to the taxpayer in relation to the income year; or
(e)
if the taxpayer is a resident of Zone B in the year of income but has not resided or actually been in Zone A or the special area in Zone B during any part of the year of income
-
an amount equal to the sum of:
(i)
$57 increased by 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; and
(ii)
if the taxpayer was not entitled to a rebate under section
159J
in respect of a dependant included in class 1 in the table in subsection
159J(2)
or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection
159J(2)
-
the dependent spouse relevant rebate amount in relation to the taxpayer in relation to the income year; or
S 79A(2) amended by No 162 of 2015, s 3 and Sch 2 items 1 and 2, by substituting
"
if the taxpayer is a resident of Zone A (but not of the special area in Zone A or of the special area in Zone B) in the year of income
"
for
"
if the taxpayer is a resident of Zone A in the year of income but has not resided or actually been in the special area in Zone A or the special area in Zone B during any part of the year of income
"
in para (b) and
"
if the taxpayer is a resident of Zone B (but not of Zone A or of the special area in Zone B) in the year of income
"
for
"
if the taxpayer is a resident of Zone B in the year of income but has not resided or actually been in Zone A or the special area in Zone B during any part of the year of income
"
in para (c), applicable to the 2015-16 year of income and later years of income.
S 79A(2) amended by No 71 of 2012, s 3 and Sch 4 item 3, by substituting
"
subsection 159J(2) or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)
"
for
"
subsection 159J(2)
"
in para (a)(ii), (d)(ii) and (e)(ii), applicable to assessments for the 2011-12 income year and later income years.
S 79A(2) amended by No 62 of 2011, s 3 and Sch 4 item 4, by substituting paras (a), (d) and (e), applicable to assessments for the 2011-12 income year and later income years. Paras (a), (d) and (e) formerly read:
(a)
where the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income
-
$1,173 increased by 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income;
(d)
where the taxpayer is a resident of Zone A in the year of income but has not resided or actually been in the special area in Zone A or the special area in Zone B during any part of the year of income
-
$338 increased by 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income;
(e)
where the taxpayer is a resident of Zone B in the year of income but has not resided or actually been in Zone A or the special area in Zone B during any part of the year of income
-
$57 increased by 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
S 79A(2) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
S 79A(2) amended by No 224 of 1992, No 4 of 1991, No 124 of 1984, No 103 of 1983, No 29 of 1982, No 108 of 1981, No 56 of 1976, No 117 of 1975, No 51 of 1973, No 143 of 1965, No 69 of 1963 and No 55 of 1958.
79A(2A)
The amount of any rebate that would, but for this subsection, be allowable to a taxpayer under this section in the taxpayer
'
s assessment in respect of income of a year of income shall be reduced by the amount of any prescribed allowance paid to the taxpayer in respect of the year of income.
History
S 79A(2A) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
S 79A(2A) inserted by No 103 of 1983.
79A(3)
Any alteration of the boundaries of any area referred to in Schedule 2 made (otherwise than by an amendment of this Act) after the commencement of this section shall not affect the operation of this section.
History
S 79A(3) amended by No 51 of 1973.
79A(3A)
This section has effect subject to section
23AB
.
History
S 79A(3A) amended by No 51 of 1973 and inserted by No 68 of 1964.
79A(3B)
For the purposes of this section, a taxpayer is a resident of a particular area, being the prescribed area, Zone A, Zone B, the special area in Zone A or the special area in Zone B (in this subsection referred to as the
relevant area
) in a year of income if:
(a)
the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of more than one-half of the year of income; or
(b)
(Repealed by No 162 of 2015)
(c)
the taxpayer died during the year of income and at the date of his or her death had his or her usual place of residence in the relevant area; or
(d)
the following conditions are satisfied:
(i)
the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one-half of the year of income;
(ii)
the taxpayer had his or her usual place of residence in the relevant area in the next preceding year of income for a period of not more than one-half of the next preceding year of income;
(iii)
for the purposes of this section, the taxpayer was not a resident of the relevant area in the next preceding year of income;
(iv)
the sum of:
(A)
the number of days in the period mentioned in subparagraph (i); and
(B)
the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection
23AB(8)
or
79B
(3) applied in relation to the taxpayer in relation to the next preceding year of income;
exceeds 182; or
(e)
the following conditions are satisfied:
(i)
the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one-half of the year of income, being a period that included the first day of the year of income;
(ii)
the taxpayer had his or her usual place of residence in the relevant area, in a relevant preceding year of income, for a period of not more than one-half of that relevant preceding year of income;
(iii)
for the purposes of this section, the taxpayer was not a resident of the relevant area in that relevant preceding year of income;
(iv)
the sum of:
(A)
the number of days in the period mentioned in subparagraph (i); and
(B)
the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection
23AB(8)
or
79B
(3) applied in relation to the taxpayer in relation to that relevant preceding year of income;
exceeds 182;
(v)
the taxpayer had his or her usual place of residence in the relevant area continuously from the commencement of the period mentioned in subparagraph (ii) until the end of the period mentioned in subparagraph (i).
History
S 79A(3B) amended by No 162 of 2015, s 3 and Sch 2 items 3
-
12, by substituting
"
had his or her usual place of residence
"
for
"
resided
"
and inserting
"
or
"
in para (a), repealing para (b), substituting
"
had his or her usual place of residence
"
for
"
resided
"
and inserting
"
or
"
in para (c), substituting
"
had his or her usual place of residence
"
for
"
resided, or actually was,
"
in para (d)(i) and (ii), omitting
"
and
"
at the end of para (d)(iii), substituting
"
had his or her usual place of residence
"
for
"
resided
"
in para (e)(i) and (ii), omitting
"
and
"
(last occurring) from para (e)(iv) and substituting
"
had his or her usual place of residence
"
for
"
resided
"
in para (e)(v), applicable to the 2015-16 year of income and later years of income. Para (b) formerly read:
(b)
the taxpayer was actually in the relevant area in the year of income for a period of more than one-half of the year of income;
S 79A(3B) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
79A(3C)
In subsection (3B), a reference to a taxpayer having his or her usual place of residence in a particular area in a year of income for a period of more than, or not more than, one-half of the year of income is a reference to the taxpayer:
(a)
having his or her usual place of residence in that area in the year of income for one period of more than, or not more than, as the case may be, one-half of the year of income; or
(b)
having his or her usual place of residence in that area in the year of income for 2 or more periods the aggregate of the lengths of which is more than, or not more than, as the case may be, one-half of the year of income.
History
S 79A(3C) amended by No 162 of 2015, s 3 and Sch 2 items 13 and 14, by substituting
"
having his or her usual place of residence in a particular area
"
for
"
residing, or actually being, in a particular area
"
, and
"
having his or her usual place of residence
"
for
"
residing, or actually being,
"
in para (a) and (b), applicable to the 2015-16 year of income and later years of income.
S 79A(3C) amended by No 29 of 1982.
79A(3D)
For the purposes of this section:
(a)
the special area within Zone A or Zone B is constituted by:
(i)
the points in that Zone that were not, as at 1 November 1981, situated at a distance of 250 kilometres or less by the shortest practicable surface route, from the centre point of the nearest urban centre (whether or not within that Zone) with a census population of not less than 2,500; and
(ii)
the points in that Zone that were within the special area in that Zone for the purposes of this section as in force immediately before the commencement of the
Income Tax Assessment Amendment Act (No 4) 1984
; and
(b)
the distance, by the shortest practicable surface route, between a point in Zone A or Zone B and the centre point of an urban centre is:
(i)
where there is only one location within that urban centre from which distances between the urban centre and other places are usually measured
-
the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and that location; and
(ii)
where there are 2 or more locations within that urban centre from which distances between parts of the urban centre and other places are usually measured
-
the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and the one of those locations that is in the principal one of those parts.
History
S 79A(3D) amended by No 124 of 1984 and inserted by No 29 of 1982.
79A(3E)
For the purposes of this section other than this subsection, the Commissioner may, if he or she considers it appropriate having regard to all the circumstances, treat a point in Zone A or Zone B that is not in the special area in that Zone but is adjacent to or in close proximity to the special area in that Zone as being a point in the special area in that Zone.
History
S 79A(3E) amended by No 41 of 2011, s 3 and Sch 5 Pt 27, by removing gender-specific language, effective 27 June 2011.
S 79A(3E) inserted by No 29 of 1982.
79A(3F)
For the purposes of this section, the census population of Nhulunbuy is taken to be less than 2,500.
History
S 79A(3F) inserted by No 4 of 1991.
79A(4)
In this section:
census population
, in relation to an urban centre, means the population of that urban centre specified in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled
"
Persons and Dwellings in Local Government Areas and Urban Centres
"
.
History
Definition of
"
census population
"
amended by No 124 of 1984.
dependent spouse relevant rebate amount
(Repealed by No 70 of 2015)
History
Definition of
"
dependent spouse relevant rebate amount
"
repealed by No 70 of 2015, s 3 and Sch 2 item 6, applicable in relation to assessments for the 2014-15 income year and later income years. The definition formerly read:
dependent spouse relevant rebate amount
means the amount of any rebate to which the taxpayer would be entitled under section
159J
in respect of a dependant included in class 1 in the table in subsection
159J(2)
if it were assumed that subsection
159J(1C)
did not apply.
Definition of
"
dependent spouse relevant rebate amount
"
inserted by No 62 of 2011, s 3 and Sch 4 item 5, applicable to assessments for the 2011-12 income year and later income years.
prescribed allowance
means so much of a payment under the
Social Security Act 1991
or the
Veterans
'
Entitlements Act 1986
as was included in the payment by way of remote area allowance.
History
Definition of
"
prescribed allowance
"
substituted by No 13 of 2014, s 3 and Sch 2 item 31, applicable in relation to payments made after 1 July 2014, other than any such payment that relates to a day before 1 July 2014. The definition formerly read:
prescribed allowance
means:
(a)
so much of a payment under the
Social Security Act 1991
or the
Veterans
'
Entitlements Act 1986
as was included in the payment by way of remote area allowance; or
(b)
so much of an exceptional circumstances relief payment, or a payment of farm help income support, under the
Farm Household Support Act 1992
as would have been included by way of remote area allowance if it had been a payment of newstart allowance under the
Social Security Act 1991
instead of an exceptional circumstances relief payment, or a payment of farm help income support.
Definition of
"
prescribed allowance
"
amended by No 144 of 2000, No 45 of 1998, No 179 of 1997, No 1 of 1996, No 184 of 1994, No 125 of 1994, No 100 of 1991, No 78 of 1988, No 49 of 1986 and No 103 of 1983.
relevant preceding year of income
, in relation to a year of income, means any of the next 4 preceding years of income other than the immediately preceding year of income.
relevant rebate amount
, in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a)
any tax offset to which the taxpayer is entitled under Subdivision
61-A
of the
Income Tax Assessment Act 1997
;
(b)
any notional tax offset to which the taxpayer is entitled under Subdivision
961-A
of the
Income Tax Assessment Act 1997
;
(c)
any notional tax offset to which the taxpayer is entitled under Subdivision
961-B
of the
Income Tax Assessment Act 1997
.
History
Definition of
"
relevant rebate amount
"
substituted by No 70 of 2015, s 3 and Sch 2 item 7, applicable in relation to assessments for the 2014-15 income year and later income years. The definition formerly read:
relevant rebate amount
, in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a)
any rebate to which the taxpayer would be entitled under section
159K
, apart from subsection
159K(1A)
;
(aa)
any rebate to which the taxpayer would be entitled under section
159L
, apart from section
159LA
;
(b)
any rebate to which the taxpayer is entitled under section
159J
in respect of a dependant who is an invalid relative for the purposes of class 5 in the table in subsection
159J(2)
or a dependant included in class 6 in the table in subsection
159J(2)
;
(ba)
any rebate to which the taxpayer would be entitled under section
159J
in respect of a dependant included in class 2 in the table in subsection
159J(2)
, apart from section
159JA
;
(c)
any rebate to which the taxpayer would, disregarding subsection
159J(1A)
, be entitled under section
159J
in respect of a dependant included in class 3 or 4 in the table in subsection
159J(2)
;
(d)
any rebate to which the taxpayer would be entitled under section
159J
in respect of a dependant included in class 1 in the table in subsection
159J(2)
(ignoring subsection
159J(1C)
and section
159JA
) if subsection
159J(1B)
also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440.
Note 1:
This definition lets a taxpayer include the dependent spouse rebate (without child), the child-housekeeper rebate or the housekeeper rebate for the purpose of working out the relevant rebate amount under this section, even if the taxpayer or the taxpayer
'
s spouse is eligible for family tax benefit at the Part B rate for the whole or part of a year.
Note 2:
Another effect of the definition (see paragraph (d)) is to let a taxpayer include the dependent spouse rebate (with child), despite its abolition by the
A New Tax System) (Consequential and Related Measures) Act (No. 1) 1999
, for the purpose of working out the relevant rebate amount.
[
CCH Note:
It is assumed that the Act referred to in Note 2 to the definition of
"
relevant rebate amount
"
is the
A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No 1) 1999
.]
Definition of
"
relevant rebate amount
"
amended by No 71 of 2012, s 3 and Sch 4 item 4, by substituting
"
in respect of a dependant who is an invalid relative for the purposes of class 5 in the table in subsection 159J(2) or a dependant included in class 6 in the table in subsection 159J(2)
"
for
"
in respect of a dependant included in class 5 or 6 in the table in subsection 159J(2)
"
in para (b), applicable to assessments for the 2011-12 income year and later income years.
Definition of
"
relevant rebate amount
"
amended by No 62 of 2011, s 3 and Sch 4 item 6, by substituting
"
ignoring subsection 159J(1C) and
"
for
"
ignoring
"
in para (d), applicable to assessments for the 2011-12 income year and later income years.
Definition of
"
relevant rebate amount
"
amended by No 105 of 2010, s 3 and Sch 1 items 42 to 44, by substituting
"
section 159LA
"
for
"
subsections 159L(3A), (5A) and (5B)
"
in para (aa),
"
section 159JA
"
for
"
subsections 159J(1AA), (3AA) and (3AB)
"
in para (ba) and
"
section 159JA
"
for
"
subsections 159J(1AA), (3AA) and (3AB)
"
in para (d), effective 1 October 2010.
Definition of
"
relevant rebate amount
"
amended by
No 75 of 2007
, s 3 and Sch 1 item 2, by substituting all the words after
"
159J(2)
"
in para (d), applicable to assessments for the 2007-2008 year of income and later years of income. The words formerly read:
if the amendments made by Division 5 of Part 2 of the
Taxation Laws Amendment Act (No. 3) 1994
had not been made and subsections 159J(1AA), (3AA) and (3AB) had not been enacted
Definition of
"
relevant rebate amount
"
amended by No 45 of 2000 and No 82 of 1999 and substituted by No 138 of 1994.
surface route
means a route other than an air route.
the prescribed area
means the area comprised in Zone A and Zone B.
urban centre
means an area that is described as an urban centre or bounded locality in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled
"
Persons and Dwellings in Local Government Areas and Urban Centres
"
.
History
Definition of
"
urban centre
"
amended by No 124 of 1984.
Zone A
means the area described in Part I of Schedule 2.
Zone B
means the area described in Part II of Schedule 2.
History
S 79A(3B), (3C), (3D), (3E) and (4) substituted for s 79A(4) by No 29 of 1982.
Former s 79A(4) amended by No 51 of 1973 and inserted by No 4 of 1945.
View history note
Hide history note