C04/2002 REMOTE AREA ALLOWANCE - EXTENSION OF AREAS ELIGIBLE FOR ALLOWANCE

Purpose

This instruction advises of:

1. changes to the Tax Zones which will extend eligibility for Remote Area Allowance (RAA) in the areas concerned;

2. the location of a data base on the Australian Tax Office web site that allows a search to determine whether a particular locality is situated in a zone which confers eligibility for RAA.

Background

The Australian Tax office has made changes to the areas that fall within its zones that attract a tax rebate.  These changes impact upon areas accepted as being remote areas for the purposes of the Veterans' Entitlements Act 1986 (the VEA).

Definition of “remote area”

A precondition to obtaining RAA is residence in a “remote area” as defined in subsection 5Q(1) of the VEA.

The definition of "remote area" in the VEA is linked to the remote areas designated a remote area for tax purposes under the Income Tax Assessment Act 1936 (ITAA 1936) as follows:

RAA definition under VEA

Reference under the ITAA 1936

Paragraph 5Q(1)(a)

Zone A

Paragraph 5Q(1)(aa)

A special area within Zone B

Paragraph 5Q(1)(ab)

Where the Taxation Commissioner exercises the discretion under subsection 79A(3E) of the ITAA 1936 in relation to the place in question.

Flinders and King Islands

According to the database on the ATO web site, Flinders and King Islands are now regarded by the ATO as falling within a special area within Zone B.  Residents of these Islands satisfy the definition of “remote area” and may be able to claim RAA.

Review of cases involving residence on Flinders and King islands

A review should be conducted of those cases involving a resident living on Flinders or King Islands to confirm whether they are eligible for RAA.  These cases can be identified on the AIS via postcodes.  The postcodes are 7255 (Flinders Island) and 7256 (King Island). Post codes for other areas can be obtained from the Australia Post web site at: http://www.austpost.com.au/postcodes/index.asp

Residents in other areas

If the person comes from a remote rural area, a search should be conducted on the database located on the ATO web site to determine whether the person resides in a remote area.

Further information about areas affected

Details from the ATO will be sought as to changes to their zones and to ensure that we are notified of any future changes. Any advice received from the ATO concerning new locations that are accepted as falling within a zone that satisfies the definition of “remote area” will be forwarded to the State concerned for examination of cases potentially affected.

Where is the site?

The following are steps to locate the data base of localities that fall within a given tax zone on the ATO web site:

Step

Instruction

1

Open “Microsoft Internet Explorer”

2

Type http://www.ato.gov.au

in the address section of the Internet Explorer tool bar.  This should open the home page of the ATO web site called “ATO Assist”.

3.

Click on the section for “Tax and Superannuation Professionals”

4.

Click on “A-Z index” on left-hand side of page.

5.

Click on the letter “Z” at top of A-Z index.

6.

Click on “zone”.

7.

Click on “Zone Tax Offset Search”

8.

Follow the instructions on the page for the search.

CLIK

This DI is complementary to the information provided on CLIK about the definition of “remote area” and RAA.

Contact officer

The contact officer is Ian Williams 6289 6382.