FIFO & mining worker tax deductions: what actually flies

FIFO and mining pay well, which means bigger marginal rates — and bigger deductions when you get them right. It also means more scrutiny, because a few myths cost workers real money every year. Here's the honest map.

The commute trap

Getting from home to your departure point — the airport, the bus pickup, the muster — is a private commute, not a work trip, even when it's hours away. The flight itself is almost always arranged and paid by the employer, so there's nothing for you to claim there either. This is the single most common knocked-back FIFO deduction.

The zone offset most FIFO workers no longer get

The remote zone tax offset still exists, but since 1 July 2015 FIFO workers whose normal residence is outside the zone are excluded. If you fly in to a remote site but live in Perth or Brisbane, you generally don't qualify — despite what a mate on site might tell you. If your usual home is in a zone, check it; otherwise, don't count on it.

Gear, PPE and tools

This is where the real claims live. Protective equipment and clothing — steel-caps, hi-vis, gloves, safety glasses, hard hats, fire-retardant workwear — is deductible, plus laundry. Sun protection for outdoor work (sunscreen, sunglasses, wide-brim hats) is one of the most-forgotten claims on any site. Tools you buy yourself follow the usual rule: under $300 outright, over $300 depreciated.

Tickets, licences and training

Renewing tickets you already hold for your role — high-risk work licences, machinery tickets, first aid, site inductions you pay for yourself — is deductible. Getting a licence for the first time to enter the industry isn't, and a standard driver's licence never is.

Phone, union and self-education

The work portion of your phone and internet is claimable with a four-week diary to back the split. Union or association fees count. So does self-education genuinely tied to your current role — but not a course to switch trades or step up to a job you don't yet hold.

The numbers

A mining worker on the median FIFO wage can sit near a 39% marginal rate, so deductions bite harder here than almost anywhere: a $3,000 sweep of PPE, tools, tickets and phone share returns around $1,170. Keep every receipt and your work-use basis, and run the deductions checklist so nothing's missed. General information only — not tax advice.