Understanding Travel Deductions for FIFO Employees
For fly-in-fly-out (FIFO) employees, understanding what travel expenses are deductible can be tricky. Typically, FIFO workers report to a location different from where their main duties are performed, often involving a transit point like an airport or a bus depot.
Non-Deductible Travel Costs Travel costs from your home to the transit point are generally not deductible. These expenses are considered a prerequisite for getting to your place of employment rather than part of your employment duties.
Deductible Travel Costs However, the cost of traveling from the transit point to your actual work location (like a mine site) can be deductible. For this to be the case, it must be clear that your job requirements are the reason for the expense. This means:
- You must begin your employment duties from the transit point.
- You should be under the direct control of your employer during the travel from the transit point to your work site.
- The travel should ideally happen during work hours, and you should be compensated for this time.
Criteria for Deductibility To determine if your travel expenses are deductible, consider the following:
- The nature of your employment and whether it necessitates travel from a transit point due to factors like the remoteness of the work site.
- Your employment contract, any relevant awards, and the practical necessities of your job.
If these elements aren’t present, you might not be able to claim travel expenses, even if traveling through a designated transit point.
Need Further Assistance?
Navigating FIFO deductions can be complex. If you have any questions or need clarification on your specific situation, please call Tax Ideas Accountants & Advisers at +61 2 83181545, or book an appointment directly through our live calendar.
- Deductibility of Employee Transport Expenses (1)
- Deductibility of Employee Transport Expenses (2) – General Deduction Principles
- Deductibility of Employee Transport Expenses (3) – Key Principles of TR 2019/D7
- Deductibility of Employee Transport Expenses (4) – Between Home and a Regular Place of Work
- Deductibility of Employee Transport Expenses (5) – Geographically Distant Places of Work
- Deductibility of Employee Transport Expenses (6) – Changing Regular Place of Work
- Deductibility of Employee Transport Expenses (7) – Exceptions
- Deductibility of Employee Transport Expenses (8) – Alternative Work Location
