Remote area tax rebate for review

MORE tax dollars could be returned to the pockets of North Queenslanders following a “long overdue” review of a rebate scheme for regional and remote residents.

The Federal Government has asked the Productivity Commission to undertake a review of remote and regional tax assistance to ensure the schemes remain “fair and contemporary”.

Treasurer Josh Frydenberg announced the review yesterday in response to concerns the current Zone Tax Offset, Fringe Benefit Tax remote area concessions and Remote Area Allowance schemes have failed to keep pace with changes in the cost of living.

“The locations eligible for these forms of assistance are determined by geographic ‘ zones’, defined in tax legislation, which have remained largely unchanged since they were established in 1945,” he said.

Currently, residents of centres like Mount Isa, Cloncurry and Camooweal qualify for a modest $ 338 Zone A annual tax offset.

And about 30 other locations in North Queensland qualify for the lesser $ 57 Zone B offset, including Townsville, Ayr, Charters Towers, Mackay and Cairns. About a dozen other remote areas, including Hughenden and Julia Creek, are classified as “special zones” where residents receive an $ 1173 tax offset.

LNP senator Ian Macdonald said he was “delighted” the Treasurer had agreed to conduct the “long overdue” inquiry.

“For many years I have been hearing . . . the tax concessions being provided in the regions are no longer fit- forpurpose,” he said.

“It is time to bring this scheme into the 21st century and I am confident the Productivity Commission Review will provide the direction that the scheme needs.”

The 12- month review is due to start in February 2019.