If you live or work in a remote or isolated area of Australia, you may be entitled to a Zone Tax Offset — reducing the tax you pay each year. Check your location instantly below.
Most remote areas. Includes all of NT, large parts of WA, QLD and SA.
Regional remote areas. Covers parts of NSW, QLD, SA, WA and Tasmania.
Locations more than 250km from a town of 2,500+ people by the shortest surface route.
Search by suburb name, town name, or postcode to instantly check eligibility.
The Zone Tax Offset (ZTO) is an Australian Government tax concession that reduces the income tax payable for individuals who live in designated remote or isolated parts of Australia. It recognises the additional costs and disadvantages associated with living far from major population centres.
Unlike a deduction, a tax offset directly reduces the amount of tax you owe — not just your taxable income.
You may be eligible if your usual place of residence is in a Zone A, Zone B, or Special Area location, and you meet the residency time requirements:
| Zone / Category | Fixed Amount | % of Base Amount |
|---|---|---|
| Zone A | $338 | 50% |
| Zone B | $57 | 20% |
| Special Area | $1,173 | 50% |
| Overseas Forces | $338 | 50% |
The base amount may apply if you maintain a dependent child under 21, a full-time student under 25, or an invalid or invalid carer. This can increase your total offset.
A Special Area is a location within Zone A or Zone B that is more than 250 kilometres from the nearest population centre of 2,500 or more people, by the shortest practicable surface route. The Special Area offset is $1,173 — significantly higher than Zone A or B alone.
Note: the ATO states this is not an exhaustive list. Some locations may qualify as a special area even if not listed. If you are unsure, contact the ATO or a registered tax agent.
If you have eligible dependants, you may be able to add a base amount to your fixed amount:
Your final offset = fixed amount + (base amount × percentage). Reduced by any remote area allowance received from Centrelink or DVA.
Claim the Zone Tax Offset in your annual tax return (individual tax return, Question T2 — Zone or overseas forces tax offset). If you are on PAYG withholding, you can also lodge a Withholding Declaration with your employer to have it applied throughout the year.
There are currently no locations in the Australian Capital Territory or Victoria that qualify for the Zone Tax Offset.