Zone or Overseas Forces Tax Offset – What You Can Claim

What Are These Offsets?

These offsets give you a little tax relief if you:

• Live or work in remote areas of Australia (Zone Offset)

• Serve overseas in the Australian Defence Force or a UN force (Overseas Forces Offset)

You can only claim one — whichever gives you the bigger bang for your tax buck.

1. Zone Tax Offset

Who Can Claim?

• You lived or worked in Zone A, Zone B, or a Special Area for at least 183 days in the financial year

• Your usual home is in that zone

Lived There Less Than 183 Days?

There’s a special rule: If you’ve lived in a zone for a continuous period (less than 5 years), and your time this year plus a previous year adds up to 183+ days — you still qualify.

What Counts as a Zone?

The ATO has a postcode list of eligible areas. Sorry ACT and Victoria — no zones there.

How Much Can You Claim?

It depends on your:

• Zone type (A, B, or special)

• Relationship status

• Number of dependents

Use the ATO’s calculator to crunch the numbers.

2. Overseas Forces Tax Offset

Who Can Claim?

• You served as part of the Australian Defence Force or a UN armed force

• You were in a specified overseas locality

• Your income from that role is not exempt from tax

• You served for 183+ days, or a pro-rata amount

What’s a “Specified Overseas Locality”?

Think South Sudan, Lebanon, East Timor, Solomon Islands — check the ATO’s current list for the latest zones.

Can You Claim Both Offsets?

Nope. It’s either zone or overseas — not both. Choose the one with the better outcome.

How Do You Claim?

• Use the Zone or overseas forces section in your tax return

• The ATO calculator can help you work out eligibility and amounts

What Records Should You Keep?

• Proof of your address and dates you lived or worked in the zone

• Defence or UN service records

• Pay info showing whether your income was exempt

Keep all this for at least five years.

Derek’s FAQ – Real Questions, Real Fast

Q: I lived in a remote town for 6 months. Can I claim the zone offset?
A: If it’s a listed zone and you clocked 183+ days — yes!

Q: I served overseas with the ADF. Can I claim the offset?
A: Yes, if your income is taxable and the area is approved.

Q: Can I claim both offsets?
A: Nope — just pick the one that saves you more tax.

Q: How do I know if I’m in a zone?
A: Use the ATO’s postcode zone tool.

Q: Not sure which one to claim?
A: Ask Derek below — or chat with a GoTax tax pro.

Bottom line:
Worked remotely or served overseas? You might qualify for a tax offset — but only one. Check the lists, keep your records, and let GoTax help you claim what you’re entitled to.

Let GoTax Handle It For You

GoTax Online makes claiming your zone or forces tax offset easy. Just enter your details and we’ll do the rest.

Start your return now: www.gotax.com.au/guest-user