What a FIFO payslip actually shows
Although layouts differ between companies, most mining payslips contain the same sections:
- Ordinary hours
- Overtime hours
- Site or industry allowances
- Leave accruals
- PAYG tax withheld
- Superannuation
Understanding each line prevents tax mistakes and refund surprises.
Base rate and ordinary hours
Your base rate is the hourly wage for standard rostered hours.
Example:
Ordinary Hours: 84
Rate: $65/hr
Gross: $5,460
This is straightforward taxable income.
Overtime
Overtime is extra pay for hours beyond standard rostered time.
Example:
Overtime: 12 hours @ $97.50
Gross: $1,170
Overtime is taxed like normal income — it is not taxed higher permanently, only withheld higher temporarily due to PAYG calculations.
Allowances
FIFO workers often see multiple allowances such as:
- Site allowance
- Height allowance
- Tool allowance
- Meal allowance
- Travel allowance
Important: Most allowances are taxable income even if they compensate you for expenses.
You usually declare the allowance, then claim deductions separately in your tax return.
The tax treatment of overtime and allowances is explained in detail here.
Tax withheld (PAYG)
The tax taken from your payslip is an estimate only.
Because swings vary, PAYG often:
- over-withholds on big swings
- under-withholds on small swings
Your final tax is calculated at year end, not per pay cycle.
Superannuation
Super is calculated from ordinary time earnings only.
Allowances and some overtime payments may not attract super depending on the award or agreement.
Why refunds vary for FIFO workers
Large refunds or tax bills happen because:
- inconsistent roster income
- variable overtime
- allowances
- missed deductions
Your payslip withholding is not your final tax outcome.
Many refunds come from legitimate work-related deductions such as meals and accommodation or tools and equipment.
Example full payslip breakdown
| Payslip item | How it is treated | What it means |
| Ordinary hours | Taxable | Income |
| Overtime | Taxable | Income |
| Allowances | Usually taxable | Income |
| Super | Not taxed now | Retirement savings |
| Deductions | Claimed later | Reduces taxable income |
Common misunderstanding
A lot of FIFO workers think a high tax amount on one payslip means they are “paying too much tax”.
In reality, PAYG withholding is calculated each pay cycle, not across your full yearly income. If one swing includes extra overtime or allowances, the withholding may look high for that pay period even though your final tax is worked out at year end.
Summary
- Payslip tax is only an estimate
- Allowances are normally taxable
- Deductions are claimed separately at tax time
Related FIFO guides
Read the Complete FIFO Tax Deductions List
For a broader overview of FIFO deductions, allowances, travel rules and common tax questions, read the Complete FIFO Tax Deductions List (2026).