Productivity Commission to Review Zone Tax Rebate

Wednesday, 28th November 2018

Productivity Commission to Review Zone Tax Rebate

In response to a comprehensive proposal submitted by Northern-based Senator Ian Macdonald, and supported by  Coalition parliamentarians who represent remote places, the Treasurer has today announced the establishment of a Productivity Commission Review into the Zone Tax Rebate.

The Review will examine the operation of the Zone Tax Rebate, Fringe Benefits Tax remote area concessions and the Remote Area Allowance in the context of fairness and amenity in regional and remote Australia.

“I am delighted that the Treasurer has agreed to instruct the Productivity Commission to conduct this long-overdue inquiry into the Zone Tax Rebate,” said the Senator.

“For many years I have been hearing from businesses and councils and families in Western Queensland and other remote locations that the tax concessions being provided in the regions are no longer fit-for-purpose.

“The Productivity Commission Review will look in-depth at the operation of these concessions and apply the fairness test to matters such as eligibility.

Senator Macdonald said he had been advocating for some time for the Review because it had become clear that developing regional and remote Australia, and in particular Northern Australia, means attracting population to smaller regional locations.

“The Zone Tax Offset has not been indexed in quarter of a century and yet it is the principal tax incentive used to attract skilled and talented workforce to regional and remote Australia.

“It is time to bring this scheme into the twenty-first century and I am confident that the Productivity Commission Review will provide the direction that the scheme needs to become a real asset to the development of regional and remote Australia.


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