Tax Deductions for FIFO Workers

Tax Deductions for FIFO Workers

FIFO worker

Average weekly pay:          $2,037 
Employment size:               80,000  
Future growth:                    Moderate       
Skill level                               Certificate III  

Fly-in fly-out (FIFO) workers are employed in remote areas (often mine sites). FIFO refers to flying the employees temporarily to the work site (instead of relocating employees and their families permanently). 

Typical tax deductions:

  • Travel to and from work if required to transport bulky equipment and there is no secure storage at the workplace. 
  • Protective clothing and equipment including fire resistant clothing, safety-coloured vests, steel-capped boots, breathing masks, gloves, and overalls. Also, work clothing branded with the employer’s logo.
  • Sun protection costs including sunglasses, hats and sunscreen lotions. Includes prescription sunglasses which are photo-chromatic glasses which have filtering and glare-reducing qualities similar to sunglasses. 
  • Union fees, Machinery operating licences and tickets.
  • Travel bags, overnight bags, suit packs, suitcases and luggage trolleys.
  • Medical examination, drug or alcohol tests for work.
  • Telephone and internet (work percentage). 
  • Courses, seminars and self-education expenses.
  • Tools and equipment.  Depreciate items costing more than $300 each.

Non deductible expenses:

  • Travelling between home and the place of departure (airport) under fly-in/fly-out arrangements. That is, taxi fares to the airport are non-deductible.
  • Relocation expenses if required to relocate closer to a new employment site.
  • Security checks prior to getting a job.
  • Alcohol consumed at work functions/events or that has the character of entertainment.

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