Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purpose of granting to residents of the prescribed area an income tax concession in recognition of the disadvantages to which they are subject because of the uncongenial climatic conditions, isolation and high cost of living in Zone A and, to a lesser extent, in Zone B, in comparison with parts of Australia not included in the prescribed area, a taxpayer (not being a company or a taxpayer in the capacity of a trustee) who is a resident of the prescribed area in the year of income is entitled, in the taxpayer's assessment in respect of income of that year of income, to a rebate of tax ascertained in accordance with this section.
(2) Subject to subsections (2A) and 79B(4), the rebate allowable under this section in the assessment of a taxpayer in respect of income of the year of income is:
(a) if the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income--an amount equal to the sum of:
(i) $1,173; and
(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(b) if the taxpayer is a resident of Zone A (but not of the special area in Zone A or of the special area in Zone B) in the year of income--an amount equal to the sum of:
(i) $338; and
(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(c) if the taxpayer is a resident of Zone B (but not of Zone A or of the special area in Zone B) in the year of income--an amount equal to the sum of:
(i) $57; and
(ii) an amount equal to 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(f) in any other case--such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this section if paragraph (a) had applied to the taxpayer in respect of the year of income and not less than the amount of rebate to which the taxpayer would have been so entitled if paragraph (c) had so applied to the taxpayer.
(2A) The amount of any rebate that would, but for this subsection, be allowable to a taxpayer under this section in the taxpayer's assessment in respect of income of a year of income shall be reduced by the amount of any prescribed allowance paid to the taxpayer in respect of the year of income.
(3) Any alteration of the boundaries of any area referred to in Schedule 2 made (otherwise than by an amendment of this Act) after the commencement of this section shall not affect the operation of this section.
(3A) This section has effect subject to section 23AB.
(3B) For the purposes of this section, a taxpayer is a resident of a particular area, being the prescribed area, Zone A, Zone B, the special area in Zone A or the special area in Zone B (in this subsection referred to as the relevant area ) in a year of income if:
(a) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of more than one - half of the year of income; or
(c) the taxpayer died during the year of income and at the date of his or her death had his or her usual place of residence in the relevant area; or
(d) the following conditions are satisfied:
(i) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one - half of the year of income;
(ii) the taxpayer had his or her usual place of residence in the relevant area in the next preceding year of income for a period of not more than one - half of the next preceding year of income;
(iii) for the purposes of this section, the taxpayer was not a resident of the relevant area in the next preceding year of income;
(iv) the sum of:
(A) the number of days in the period mentioned in subparagraph (i); and
(B) the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection 23AB(8) or 79B(3) applied in relation to the taxpayer in relation to the next preceding year of income;
exceeds 182; or
(e) the following conditions are satisfied:
(i) the taxpayer had his or her usual place of residence in the relevant area in the year of income for a period of not more than one - half of the year of income, being a period that included the first day of the year of income;
(ii) the taxpayer had his or her usual place of residence in the relevant area, in a relevant preceding year of income, for a period of not more than one - half of that relevant preceding year of income;
(iii) for the purposes of this section, the taxpayer was not a resident of the relevant area in that relevant preceding year of income;
(iv) the sum of:
(A) the number of days in the period mentioned in subparagraph (i); and
(B) the number of days in the period mentioned in subparagraph (ii), other than days included in a period to which subsection 23AB(8) or 79B(3) applied in relation to the taxpayer in relation to that relevant preceding year of income;
exceeds 182;
(v) the taxpayer had his or her usual place of residence in the relevant area continuously from the commencement of the period mentioned in subparagraph (ii) until the end of the period mentioned in subparagraph (i).
(3C) In subsection (3B), a reference to a taxpayer having his or her usual place of residence in a particular area in a year of income for a period of more than, or not more than, one - half of the year of income is a reference to the taxpayer:
(a) having his or her usual place of residence in that area in the year of income for one period of more than, or not more than, as the case may be, one - half of the year of income; or
(b) having his or her usual place of residence in that area in the year of income for 2 or more periods the aggregate of the lengths of which is more than, or not more than, as the case may be, one - half of the year of income.
(3D) For the purposes of this section:
(a) the special area within Zone A or Zone B is constituted by:
(i) the points in that Zone that were not, as at 1 November 1981, situated at a distance of 250 kilometres or less by the shortest practicable surface route, from the centre point of the nearest urban centre (whether or not within that Zone) with a census population of not less than 2,500; and
(ii) the points in that Zone that were within the special area in that Zone for the purposes of this section as in force immediately before the commencement of the Income Tax Assessment Amendment Act (No. 4) 1984 ; and
(b) the distance, by the shortest practicable surface route, between a point in Zone A or Zone B and the centre point of an urban centre is:
(i) where there is only one location within that urban centre from which distances between the urban centre and other places are usually measured--the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and that location; and
(ii) where there are 2 or more locations within that urban centre from which distances between parts of the urban centre and other places are usually measured--the distance, by the shortest practicable surface route, between that point in Zone A or Zone B and the one of those locations that is in the principal one of those parts.
(3E) For the purposes of this section other than this subsection, the Commissioner may, if he or she considers it appropriate having regard to all the circumstances, treat a point in Zone A or Zone B that is not in the special area in that Zone but is adjacent to or in close proximity to the special area in that Zone as being a point in the special area in that Zone.
(3F) For the purposes of this section, the census population of Nhulunbuy is taken to be less than 2,500.
(4) In this section:
"census population" , in relation to an urban centre, means the population of that urban centre specified in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled "Persons and Dwellings in Local Government Areas and Urban Centres".
"prescribed allowance" means so much of a payment under the Social Security Act 1991 or the Veterans' Entitlements Act 1986 as was included in the payment by way of remote area allowance.
"relevant preceding year of income" , in relation to a year of income, means any of the next 4 preceding years of income other than the immediately preceding year of income.
"relevant rebate amount" , in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a) any tax offset to which the taxpayer is entitled under Subdivision 61 - A of the Income Tax Assessment Act 1997 ;
(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961 - A of the Income Tax Assessment Act 1997 ;
(c) any notional tax offset to which the taxpayer is entitled under Subdivision 961 - B of the Income Tax Assessment Act 1997 .
"surface route" means a route other than an air route.
"the prescribed area" means the area comprised in Zone A and Zone B.
"urban centre" means an area that is described as an urban centre or bounded locality in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Bureau of Statistics in the documents entitled "Persons and Dwellings in Local Government Areas and Urban Centres".
"Zone A" means the area described in Part I of Schedule 2.
"Zone B" means the area described in Part II of Schedule 2.