1.2.7.80 Remote Area Allowance (RAA) - Description

Objective of RAA

RAA helps to meet additional costs associated with residence in remote areas. It recognises that many income support recipients who do not pay tax, or pay very little tax, do not receive the full benefit of tax zone rebates. RAA makes a contribution towards some of the higher costs associated with living in particularly remote areas.

To qualify for RAA a person must:

• be receiving a social security pension, allowance or benefit,
• be physically present in a remote area (section 14(1) physically present in a remote area), AND
• have their usual place of residence situated in a remote area.

CDEP scheme participants who are not pensioners are subject to a multiple entitlement exclusion on RAA. This is because community funding for CDEP wages for participants in remote areas contains a remote area loading.

The definition of remote area in the SSAct is based on Parts I & II of Schedule 2 of the Income Tax Assessment Act.

For the purposes of RAA, the remote areas are the specified area of Taxation Zone A, including Special Taxation Zone A and Special Taxation Zone B. The remote areas include the Torres Strait Islands, Lord Howe Island, the Cocos (Keeling) Islands and Christmas Island.

The following areas specified in Taxation Zone A are NOT part of the RAA specified area:

• Norfolk Island,
• Macquarie Island,
• the Territory of Heard Island,
• the McDonald Islands, and
• the Australian Antarctic Territory.

Act reference: SSAct section 14(1) Remote area definitions

How RAA is paid

RAA is paid fortnightly with the income support recipient's main payment.

Background information

RAA was introduced on 1 May 1984.

Act reference: SSAct section 1062 to section 1068B Rate Calculators-General, (Pt.3.1 to 3.6A), section 14 Remote area definitions

Policy reference: SS Guide 3.8.8 RAA - Qualification & Payability, 5.1.7.70 RAA - Current Rates

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Last reviewed: 1 November 2010