Working in a Fly-In-Fly-Out (FIFO) capacity presents unique financial scenarios and, to match this, the Australian Taxation Office (ATO) provides several tax deductions for FIFO workers. If you're a FIFO worker in Australia, this guide will highlight key tax deductions you should consider when preparing your tax return.
Travel Expenses
Contrary to what you might think, regular FIFO travel schedules, such as commuting to and from the airport and flight costs, aren't tax-deductible. However, if your job requires temporary travel for activities like meetings, training, or other work-related tasks, you can claim these costs. Additionally, you can claim car expenses if you travel between various jobs in a day or drive to different workplaces for the same employer on the same day.
Work Uniforms and Protective Clothing
You're eligible to deduct the cost of a work uniform that carries your employer's logo. However, general clothing items such as socks, shoes, or underwear, even if worn with your uniform, aren't claimable. Also, you can claim deductions for protective gear like safety glasses, masks, steel cap boots, gloves, and reflector vests.
The cost of cleaning, renting, or repairing work-related or protective gear is deductible if you meet specific conditions. For instance, if your claims are under $150, you aren't required to provide written documentation. The ATO estimates laundry costs to be $1 per load of work-related clothing, or 50 cents if it includes other non-work-related attire. Note that you can't claim deductions on protective clothing provided or maintained by your employer. Lastly, sun protection gear like sunscreen, sunglasses, and hats used for work are also tax-deductible.
Tools and Equipment
If you purchase work-related tools and equipment costing less than $300, these are fully deductible. If the cost exceeds $300, you must claim depreciation over the tool's lifespan. Your claim should indicate the percentage of time the item was used for both work and personal purposes. You're only allowed to claim the work-related usage percentage.
Phone and Internet Expenses
Part of your phone and internet bills may be tax-deductible if you need to communicate with your employer during your off-periods. However, any portion used for private use, even during your free time at work, isn't claimable. If you are required to work or train from home, you may be able to claim internet and home office expenses.
Other FIFO-related Deductions
There are other deductions specific to FIFO workers:
Fees for renewing licences, permits, cards, or certifications required for operating machinery and equipment (excluding ordinary driver's licences).
Mandatory medical assessments or tests, including drug and alcohol tests (pre-employment assessments are not covered).
Self-education expenses directly related to your current job.
Costs related to required first aid training.
General Expenses
In addition to the FIFO-specific deductions, consider the following general tax deductions:
Union, registrations, memberships, tools.
Home office, seminars, conferences.
Overtime meals.
Income protection insurance.
Charity donations.
Tax agent fees from the previous year.
Personal super contributions.
Other income-earning costs.
Getting help from experienced tax advisors and accountants can simplify the process and ensure you maximise your deductions. At Spence Financial Management, our experts are ready to assist you with your FIFO tax returns seven days a week, with extended hours. Don't miss out on any potential deductions.
To book your tax return appointment with us, simply click the button below. Remember, every dollar counts!
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