Questions and Answers
Essential Tax Deductions for FIFO Workers in Australia
As FIFO workers navigate the complexities of tax season, understanding which deductions you can claim is crucial for maximising your tax return. TaxAssist Accountants is here to ensure you make the most of every eligible deduction.
Key Deductions for FIFO Workers:
- Travel Costs: Claimable for temporary work-related travel. Regular FIFO commutes to and from your site are not deductible.
- Meal Allowances: Deductible under specific conditions such as documented overtime arrangements where meals are compensated by the employer.
- Protective Gear and Uniforms: Expenses for mandatory safety equipment and branded uniforms are deductible.
- Tools and Equipment: Items under AUD 300 are immediately deductible, with depreciation available for more expensive items.
- Phone and Internet Expenses: Deductible based on the proportion used for work.
Frequently Asked Questions:
- How can I substantiate work-related expenses?
- Keep comprehensive records including receipts, bank statements, and logs detailing work use.
- Are travel expenses to the airport deductible?
- No, travel from your home to the airport is considered personal and not deductible.
- Can I claim expenses covered by an allowance?
- Yes, though the allowance must be declared as income, and only the expenses exceeding the allowance are claimable.
- What if my work location changes frequently?
- You can claim deductions for temporary relocations that are necessary for work.
- How does working remotely impact my deductions?
- You might be eligible for home office deductions, including a portion of your internet and electricity costs, if you work from home.
How We Can Help
At TaxAssist Accountants, we offer tailored tax services for FIFO workers, ensuring comprehensive support from preparing your returns to advising on deductions. Our team is dedicated to securing the best financial outcomes for you. Call us today on 1300 513 332 and book for an inital free consultation.
Date published 28 Jan 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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