15 October 2014
Bronwyn Wheatcroft
The North West Star
RECOMMENDATIONS for the tax zone reform have been included in the Green Paper on Developing Northern Australia.
Mount Isa Mayor Tony McGrady campaigned to increase the North West’s Tax Zone Allowance in November 2013, as the current figure has not changed since it was established in 1945.
Residents who currently reside in the North West for more than 180 days can only claim $338.
Minister for Finance Mathias Cormann said the inclusion of the tax zone reform in the Green Paper would be processed for the White Paper on developing Northern Australia, determining what the right tax policy setting were.
“This will include looking closely at the specific elements of the tax system that impact Northern Australia, such as the zone tax offset,” he said.
Cr McGrady said this country needed to make a decision and if you went out to the region, there should be incentives such as fringe benefits, tax adjustments and an increased personal zone tax offset.
“If you come out here you would be entitled to earn, we’re suggesting, as an initial start $10,000 a year which would be tax-free,’’ he said.
‘‘So that would give you extra money in your pay packet, or a carrot for people to come and live in the remote parts.’’
After introducing the campaign to increase the North West’s Tax Zone Allowance, the House of Representatives has included it in the Green Paper.
Courtesy of The North West Star