Zone tax offset to exclude “fly‐in fly‐out” and “drive‐in drive‐ out” workers
The zone tax offset will exclude “fly‐in fly‐out” and “drive‐in drive‐out” (FIFO/DIDO) workers where their normal residence is not within a “zone”.
The zone tax offset is a concessional tax offset available to individuals in recognition of the isolation, uncongenial climate and high cost of living associated with living in identified locations. Eligibility is based on a taxpayer residing or working in a remote area for more than 183 days in an income year.
The specified remote areas of Australia covered by the zone tax offset are comprised of two zones, Zone A and Zone B. In general, Zone A comprises those areas where the factors of isolation, uncongenial climate and the high cost of living are more pronounced and Zone B comprises the less badly affected areas. The tax offset for ordinary Zone A residents is accordingly higher than the tax offset for ordinary Zone B residents. A special category of zone allowances is available to taxpayers residing in particularly isolated areas (“special areas”) within either zone.
This measure will better target the zone tax offset to taxpayers who have taken up genuine residence within the zones. This will align the zone tax offset with the original intent of the policy, which was to support genuine residents of zones. For those FIFO workers whose normal residence is in one zone, but who work in a different zone, they will retain the zone tax offset entitlement associated with their normal place of residence.
This measure will take effect from 1 July 2015.