A guide to tax offsets and deductions for Australian farm and agricultural workers.

Living and working in remote towns of Australia has its own set of challenges, rewards and experiences. It also has its own tax offsets and tax deductions.

Whether you are employed on a dairy farm, fruit orchid, cattle station or anything in between, below is a guide which will help you be prepared for tax time and know your entitlements.

Zone Rebate - Tax Offset

If you live and work in a remote part of Australia you could be entitled to a zone rebate of up to $1,173 + 50% of the amount of other offsets you are eligible for such as the dependent (invalid and carer) offset.

Check here to see if you live in an area which qualifies for the rebate.

If your area qualifies, you will be listed in one of the following zones: zone A, special zone A, zone B or special zone B.

The rebates for the different zones are as follows:

Zone A = $338 + 50% of other eligible rebate amount

Special Zone A = $1,173 + 50% of other eligible rebate amount

Zone B = $57 + 20% of other eligible rebate amount

Special Zone B = $1,173 + 50% of other eligible rebate amount

Tax Deductions for farmers and Agricultural Workers

Tax deductions are allowed for most employees so long as the expense was incurred in the process of generating income from your job. However an expense might be non-deductible for on person and fully deductible for another.

E.g. If a white collared city slicker purchased a new border collie this would be considered a domestic pet. If a farm worker purchased the same dog it may very well be considered a working animal and fully tax deductible.

list of deductions/expenses to consider:

- All terrain vehicle (quadbikes)

- Car

- Firearm

- Firearm license renewal

- Clothing

- First Aid supplies and training

- Protective gear

- Hired equipment

- Equipment insurance

- Laundry

- Travel meals

- Phone and internet

- Repairs and maintenance

- Self education equipment

- work related seminars and conferences

- Sunglasses, hats and sunscreen

- Travel expenses

- Union and membership fees

- Working animals

Be sure to keep tax invoices for all your expenses to ensure you can substantiate your claims in the event of an audit by the Australian Taxation Office.

For most expenses that exceed $300 the item will have to be depreciated and expensed over multiple tax returns.

Example if you were to buy a new pair of boots for $400 then they would be expensed over your next 3 tax returns.

Need help with you taxes in remote areas of Australia?

Contact ctkaccounting.com.au for all your Australian taxation and bookkeeping needs.

Thanks to online accounting systems and processes we are able to assist clients all over Australia from our accountancy office based in Wollongong, NSW.

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