A taxpayer may be eligible for an overseas forces tax offset if they derived income from serving in a specified overseas locality as a member of the Australian Defence Force.
To claim the full tax offset you must have served in the overseas locality for more than half of the income year (183 days). If your service was less than 183 days, you may still be able to claim part of the offset.
If you qualify for both an Overseas Forces tax offset and a Zone tax offset, you can only claim one of them… so be sure to claim the higher of the two.
How much is the Overseas Forces Tax Offset?
The following tax offset rates apply for the 2015-16 financial year.
|Period of Service||Maximum Offset|
|183 + days||$338 + 50% of the concessional rebate amount|
|Less than 183 days||Apportioned on a time basis over 183 days|
The period of service specifically excludes any days on which the income was exempt from tax.
The ‘concessional rebate amount’ means the sum of the tax offsets to which the taxpayer is entitled, or would notionally be entitled to, if they still existed. These include:
- spouse (including “with child” as if it still existed);
- invalid relative;
- parent or parent-in-law;
- child or student (as if it still existed);
- sole parent (as if it still existed).
Specified Overseas Localities
The following table lists the current specified overseas localities for the purposes of the Overseas Forces Tax Offset.
|Date Begins||Date Ceases||Description of the specified locality|
|1 July 2014||30 June 2015||
For service with Operation OKRA, the land territory, territorial waters, airspace and superjacent airspace of the:
State of Kuwait
Kingdom of Bahrain
United Arab Emirates
State of Qatar, and
Hashemite Kingdom of Jordan.
|1 July 2014||30 June 2015||For service with Operation OKRA, the waters, airspace and superjacent airspace of the Persian Gulf (also known as the Arabian Gulf).|
|1 July 2014||31 December 2014||For service with Operation Accordian, the land territory, internal waters, airspace and superjacent airspace of:
the Kingdom of Bahrain
the State of Qatar, and
the United Arab Emirates.
|1 July 2014||30 June 2015||For service with Operation Manitou, the sea (including adjacent ports and the area within a 10 kilometres radius of such ports) and superjacent airspace of:
the Arabian Sea, north of Latitude 12 degrees South and west of Longitude 68 degrees East
the Persian Gulf
the Strait of Hormuz
the Gulf of Oman
the Gulf of Aden, and
the Red Sea.
|26 October 2011||-||The Republic of South Sudan and Uganda including superjacent airspace.|
|20 July 2006||-||Area comprising Lebanon and its territorial waters and superjacent airspace.|
|12 May 2006||-||Area comprising East Timor and its territorial waters and superjacent airspace.|
|28 October 2005||-||Area comprising the land, sea and air areas bounded by the internationally recognised borders of Pakistan.|
|10 April 2005||-||Sudan and its territorial waters and superjacent airspace.|
|24 July 2003||-||Total land areas, territorial waters and superjacent airspace boundaries of the Solomon Islands.|
|21 April 2003||-||Total land area, territorial waters and superjacent airspace within the internationally recognised boundaries of Israel, Jordan, Syria, Lebanon and Egypt.|
|11 June 1999||-||Area comprising the political boundaries and airspace of the Federal Republic of Yugoslavia (including the province of Kosovo), Albania and the former Yugoslav Republic of Macedonia.|
|28 October 1992||-||The Sinai.|
The Taxation Office have an online Zone or overseas forces tax offset calculator available.
The calculator will help you determine your eligibility for a zone or overseas forces tax offset, and calculates the tax offset that you can claim.