FIFO workers often receive additional payments on top of their base pay, commonly described as allowances. These may cover things like meals, travel, site conditions or living away from home arrangements.
For tax purposes, allowances are not all treated the same way. In many cases they still need to be included as income, and receiving an allowance does not automatically mean you can claim a deduction.
This guide explains common FIFO allowances, how they are usually treated, and what to check on your payslip before lodging your tax return.
Common FIFO Allowances
FIFO workers may receive several types of allowances depending on their employer and roster arrangements.
Some of the most common allowances include:
• meal allowances
• travel allowances
• site or remote location allowances
• Living Away From Home Allowance (LAFHA)
Each allowance is treated differently for tax purposes, and in many cases allowances must still be declared as income.
Important tax rule for FIFO allowances
Receiving an allowance does not automatically make the related expense deductible. In general, FIFO workers can only claim a deduction where:
- they actually spent the money themselves
- the expense was work-related
- they were not reimbursed by the employer
- they kept the right records
Not sure what you can actually claim?
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Living Away From Home Allowance (LAFHA)
Some FIFO workers receive a Living Away From Home Allowance (LAFHA) to help cover additional costs when working away from their usual residence.
LAFHA is designed to compensate workers for expenses such as accommodation and meals when they must live away from home temporarily for work.
However, LAFHA arrangements can be complex and may have different tax treatments depending on how the allowance is structured.
LAFHA arrangements can be complex and may be treated differently depending on how the payment is structured. Workers should check how the allowance appears on their payslip or employment documents rather than assuming it is automatically tax-free or deductible.
FIFO Meal Allowances
Travel allowances are usually taxable income, although deductions may sometimes apply depending on the reason for the travel and whether the expense was genuinely work-related. Travel to a regular worksite is still usually private, even if an allowance is paid.
FIFO Travel Allowances
Some FIFO workers receive travel allowances to help cover transport costs associated with their job.
These allowances may relate to:
• travel between work sites
• travel during shifts
• transport provided by employers
Travel allowances are usually taxable income, although deductions may sometimes apply depending on the type of travel.
Checking Your FIFO Payslip
FIFO allowances are often listed separately on payslips or income statements. Common labels may include meal allowance, travel allowance, site allowance, remote area allowance, or Living Away From Home Allowance (LAFHA).
Reviewing your payslip carefully can help you understand which payments are included in your taxable income and how they may need to be reported at tax time.
If you are unsure how a payment is being treated, check your payslip, income statement and employment contract together.
Common FIFO allowance mistakes
Common mistakes include:
- assuming an allowance is tax-free
- assuming an allowance automatically creates a deduction
- claiming expenses that were not actually paid personally
- claiming ordinary meals or travel without meeting the deduction rules
- not checking how the allowance appears on the payslip or income statement
Related FIFO allowance guides
Read the Complete FIFO Tax Deductions List
To see a broader breakdown of FIFO deductions and how they interact with travel, tools, uniforms, phone use, training and other work-related expenses, read the Complete FIFO Tax Deductions List (2026).
Don’t leave your tax refund to guesswork
Most FIFO workers either miss deductions or claim things incorrectly.
This toolkit helps you:
• Claim correctly
• Stay organised
• Avoid costly mistakes
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