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Zone Tax Offset Changes

Discussion in 'Accounting & Tax' started by MikeLivingTheDream, 24th Jun, 2016.

  1. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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    It seems that a few people working in a zone who were previously eligible for the zone tax offset are not aware of the changes that have been made.

    Previously if you worked in a zone for more than 183 days (actual terms were reside or to be physically present) then you were entitled to the offset.

    From 1 July 2015 changes were made to the residency test so that unless the individual's usual place of residence is in the zone then they are no longer eligible for the tax offset.

    So if you work in a designated remote area zone but ordinarily live outside a zone then you can no longer claim the zone tax offset.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Ouch! So if you have a PPOR in Sydney and get a 7 month posting to a remote area which qualifies, how would you be classified?
     
  3. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

    Joined:
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    Location:
    Philippines
    if their usual place of residence was Sydney and on a posting to a remote area for 7 months they would no longer be eligible for the offset.
     
  4. bob shovel

    bob shovel Well-Known Member

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    Interesting. I'll have to have a looksie

    If youre being posted there's likely an allowance being paid. But relocating is s different story.
    I haven't looked into it but there were big changes to the living away from home allowances to a few years ago worth companies taking advantage of the tax freeness
     
  5. bob shovel

    bob shovel Well-Known Member

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    Area list i found in the ato webby:
     

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