Tax Tips for Miners & FIFO Workers

By GoTax Editorial | Reviewed by a CA ANZ Chartered Accountant | Updated 2025

FIFO workers ask more questions about what they can and can't claim than almost any other occupation — and for good reason. The rules are genuinely complicated. Home-to-airport travel is not deductible, even if you're flying to a remote mine. Meals on site are not deductible if your employer provides them. But the zone tax offset is real and worth up to $338 a year, almost nobody claims it, and it requires no receipts whatsoever. This guide cuts through what's claimable, what isn't, and the five mistakes that cost miners money every year.

What Miners & FIFO Workers Can Claim

The ATO distinguishes between costs you incur as a direct result of earning income and costs that are private or domestic. For miners, the lines run through the middle of some expenses that feel work-related — which is why the travel and meals rules catch so many workers off guard.

FIFO Miners vs Resident & DIDO Miners

Your work arrangement determines which costs are legitimately deductible. FIFO and DIDO workers face different rules on travel, and both differ from resident miners. The comparison below covers the key differences.

Five Things Miners Often Miss (or Wrongly Claim)

1. The zone tax offset -- worth up to $338, and almost nobody claims it. If your mine site is in a qualifying Zone A area -- which includes most remote WA outback sites, NT mines, and far north Queensland -- you may be entitled to the Zone A tax offset. This is not a deduction; it directly reduces your tax payable. The maximum Zone A offset is $338 per year. You do not need receipts -- just your posting address and the dates. Check the ATO's zone list. If you've been posted to a remote site for years and never claimed this, you may be able to amend previous returns.

2. Laundry is deductible -- but only if you keep a record. Hi-vis shirts, safety overalls, and other protective workwear can be claimed at $1 per load for a work-only wash or $0.50 per load if washed with household laundry. For claims over $150, the ATO requires a four-week representative diary showing how many loads you did and how often. Most miners skip this entirely. Over a full year of rosters, this can add $200 to $500 to your deductions.

3. The trip from home to the airport is not deductible. This is the most common error in mining returns. If you live in Perth and fly to a Pilbara mine, the taxi or Uber to Perth Airport is a private travel expense -- full stop. Only travel between airports on the way to site, or between the airport and the mine site, may be deductible -- and only if your employer does not arrange or reimburse it. If your employer covers all travel, there is nothing to claim at all.

4. Site meals are not deductible when your employer provides them. Mine camp dining is an employer benefit, not a deductible expense. Even if you pay a food levy, a mess fee, or a board deduction out of your wages, the ATO treats employer-provided on-site meals as private consumption unless the payment genuinely exceeds the value provided. If you fund meals yourself during travel between legs (at an airport, for example), those costs may be deductible -- but keep the receipts.

5. Overtime meal allowances from your EBA have a separate tax treatment. If your enterprise bargaining agreement pays you a meal allowance for overtime -- not for FIFO travel -- that allowance is assessable income if it exceeds the ATO's reasonable amount (currently $38.85 per meal in 2024-25). You can offset the assessable amount with the actual cost of the meal, but you need the receipt. Many miners declare the allowance as income and forget to claim the offsetting meal cost, or don't declare the allowance at all and get a surprise in an ATO review.

What to Have Ready Before You Start

FIFO returns have more moving parts than most. Getting your records together before you start will make the process significantly faster.

Frequently Asked Questions

What's the difference between FIFO and DIDO travel claims?

For FIFO workers, the employer typically arranges and pays for flights to the mine site. In that case, there is nothing for you to claim -- the employer's cost is not your deduction. If you personally pay for any travel between airports or to the site that your employer does not reimburse, that cost may be deductible. For DIDO workers who drive to site in their own vehicle, travel costs from home to the mine site are potentially deductible under logbook or cents-per-km method -- provided the employer does not reimburse you. In both cases, travel from your home to the nearest city hub (e.g., Perth, Darwin, Townsville) is private travel and is not deductible.

Can I claim the zone tax offset for a remote mine site?

Yes, if the mine site is in a qualifying Zone A or Zone B area. Zone A applies to the most remote areas -- much of the WA outback, the NT, and far north Queensland -- and provides the larger offset of up to $338 per year. Zone B applies to less remote but still qualifying areas. You do not need receipts; you need the site address and your posting dates. The zone offset is claimed via the Zone or Overseas Forces Tax Offset schedule in your tax return. Check the ATO's zone lookup tool or ask your GoTax agent to confirm your site's zone status. Use the GoTax Tax Calculator to estimate how the offset affects your refund.

Are meals deductible for FIFO workers?

It depends on whether your employer provides them and where you are when you eat them. On-site meals in the mine camp dining room are not deductible -- the employer is providing the benefit. Meals you personally fund during travel between airports or en route to site may be deductible if you are genuinely away from home overnight and the cost is not reimbursed. Keep receipts for any travel-leg meals you intend to claim. Do not claim the value of meals the employer provides, even if they deduct a levy from your wages for them.

How do I calculate laundry for hi-vis and workwear?

The ATO allows $1 per load for a wash that is entirely work clothing, or $0.50 per load if you mix work and personal items. For claims under $150, no diary is required. For claims over $150, you need a four-week representative diary showing how many loads per week you did and whether they were mixed. Multiply the weekly rate by 52 (or your actual working weeks). Most FIFO workers on a 2-on/1-off roster wash work gear every rotation, which adds up quickly. Keep the diary in early July so you have a clean four-week sample.

My EBA pays a meal allowance -- is it taxable?

Yes, if it exceeds the ATO's reasonable amount for the relevant meal type. For 2024-25, the reasonable amount for an overtime meal allowance is $38.85. If your EBA pays more than this per overtime meal, the excess is assessable income. If it pays less than or equal to this, it is not assessable (and you cannot claim the meal cost either). If you declare the allowance as income, you can claim the actual cost of the meal as a deduction -- but keep the receipt. Note that travel meal allowances for FIFO travel are assessed separately and follow travel allowance rules.

What records do mining workers need to keep?

For ADF returns keep: pay summaries for all mine employers; FIFO travel itineraries and receipts for any personally-funded legs; PPE and tool receipts; union fee records (check payslip for automatic CFMEU deductions); a laundry diary if claiming over $150; your mine site posting address and dates for zone offset claims; training and licence receipts; and income protection policy and premium statements. The ATO requires five years of records from the date you lodge. Digital copies -- photos of receipts, PDFs of payslips -- are fully acceptable.

Is GoTax suitable for miners with complex rosters or multiple employers?

Yes. GoTax handles mining returns including FIFO travel claims, zone tax offsets, DIDO logbooks, multiple employer income, and EBA allowance treatment. All returns are prepared by ATO-registered tax agents and reviewed by a Chartered Accountant. Pricing is fixed: Individual Tax Return from $65, with no additional charge for complexity. Start your mining tax return at GoTax.

About GoTax

GoTax is an ATO-registered online tax agent. All returns are CA-reviewed. Fixed pricing: Quick Return $35 | Individual Return $65 | Rental Property $109 | Contractors $140

About the Author

This article was written by the GoTax editorial team and reviewed by a Chartered Accountant registered with CA ANZ. GoTax advisors hold current ATO registration. Content is updated annually before tax season.

Liability Disclaimer: This article is general information only and does not constitute tax advice. Individual circumstances vary. Consult a registered tax agent before lodging your return.