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Click label R at item T4 to open the Zone, Overseas Forces offset selection screen.

The zone tax offset is made up of three amounts:

  • the fixed amount for the relevant zone, plus

  • a percentage of a base amount, plus

  • the invalid spouse or carer, invalid relatives, parents/parents-in-law claimed at item T6 invalid and carer.

Eligibility to claim the Zone or Overseas forces tax offsets

To claim the Zone or the Overseas forces tax offsets, you must have resided in the Zone as well as working in the Zone.

To qualify for the Zone tax offset, your usual place of residence must have been in a remote area (not necessarily continuously) for:

  • 183 days or more during 2017–18, or
  • 183 days or more during the period 1 July 2016 to 30 June 2018 (including at least one day in 2017–18) and you did not claim a zone tax offset in your 2017 tax return.

To qualify for an overseas forces tax offset the taxpayer:

  • must have served in a specified overseas locality as a member of the Australian Defence Force or a United Nations armed force in the current income year, AND
  • the income relating to that service was not specifically exempt from tax.

Periods of service for which the income was 'exempt foreign employment income' are excluded in working out eligibility for the tax offset.

If the overseas service was less than 183 days, you may be able to claim part of the tax offset.

To claim the full overseas forces tax offset:

  • You must have served in the overseas locality for 183 days or more in the current income year, OR

  • The total number of days you served in the overseas locality, when added to the number of days spent in one or more zones, equals 183 days or more.

 

Select the Entitled to claim... checkbox to open the worksheet.

To complete the Circumstances tab

Enter the number of days you spent in one or more of the zones.

The base amount is calculated immediately. If you have dependants (Married or Single parent) complete the relevant notional offsets in the Base amount offsets tab.This amount will pre-fill the Notional offsets field.

If you've received a Remote area allowance, then enter that amount. If you have used the ATO Pre-fill, then when you opened the ZTO that amount will have been pre-filled.

 

FieldDescription
Base amountThese are the Notional offset claimed in the worksheets contained in the Base amount offsets tab (Sole Parent and Dependent child/student). To this amount is added the offset claimed at T6 Invalid and carer and displayed in the Notional Offset box. If the taxpayer resided in a Special zone, then 50% of the base amount is added to offset for the special zones and 20% for the ordinary zones.
Notional offset

The amount in this field is the sum of the Invalid and care offset you have claimed at T6 including:

  • Your invalid spouse or carer

  • Your or your spouse's invalid carer parent

  • Your or your spouse's invalid, child, brother or sister (an invalid relative)

Remote area allowance Enter any amount of remote area allowance received from Centrelink or the Department of Veterans' Affairs or the equivalent amount that was included in an exceptional circumstances relief payment. Such an amount will reduce the Total offset calculated.
Offsets calculated This is the summary section of the worksheet and is not open to edit.
To complete the Base amounts offsets

Base amount offsets are Notional offsets used in the calculation of certain dependency offsets.

Before attempting to calculate Notional offsets, ensure that where the taxpayer has a spouse, you complete the Spouse Details item.

Click Sole parent to open the worksheet to enter the number of dependent children.

See Notional Sole Parent information.

Click Dependants to open the Notional dependants' worksheet.

This is a transactional dialog and you can have more than one notional dependant. When you enter the details and auto accept is on, the entry is cleared to the storage area at the top of the worksheet and the screen is ready for the next dependant's details.

See Notional Dependant offset information.