Quick answer
Many FIFO workers either miss legitimate deductions or claim expenses they are not entitled to. The most common errors involve travel, meals, allowances and record-keeping. These mistakes can reduce refunds or trigger ATO adjustments.
Why FIFO tax returns are commonly wrong
FIFO tax is confusing because workers receive allowances, travel long distances and live on site.The tax treatment depends on whether the expense is private, employer-provided or work-related — not simply whether it feels work related.
Because of this, many workers either:
- over-claim and get audited
- under-claim and lose refunds
Mistake 1 — Claiming flights to site
Many workers assume flights are deductible because they are required to reach work.
In most cases travel from home to your regular work location is private.
This includes rostered flights organised by your employer.
Read the full flights to site rules before claiming.
Mistake 2 — Claiming meals automatically
Food is only deductible in specific circumstances.
Living at a mine camp does not automatically make meals deductible.
Meals are usually considered a private living expense unless you meet strict conditions.
See the meals and accommodation deductions guide for details.
Mistake 3 — Not declaring allowances correctly
Allowances on a payslip are often misunderstood.
Some workers:
- don’t declare them (ATO already receives payroll data)
- or assume they are tax-free
Most allowances must be declared as income, then deductions claimed separately.
The difference between taxable allowances and deductions is explained in the overtime and allowances rules.
Mistake 4 — Claiming travel to airport
Driving to the airport feels work related but is normally private travel.
Distance does not change deductibility
— purpose does.
See travel to airport rules before claiming kilometres.
Mistake 5 — No records kept
The ATO disallows many FIFO claims simply because workers cannot prove them.
You should keep:
- receipts
- rosters
- logbooks
- diary entries
No records = no deduction.
Mistake 6 — Missing legitimate deductions
The opposite problem is very common.
Many workers also miss tools and equipment deductions they are entitled to claim.
How to avoid problems
Before lodging a return:
- Declare all income and allowances
- Separate private vs work expenses
- Check travel rules carefully
- Keep written evidence
Summary
- Most FIFO tax errors involve travel and meals
- Allowances are usually taxable income
- Proper records protect your refund and reduce audit risk
Full FIFO Tax Deduction Guide
If you want a full breakdown of FIFO tax rules, common deductions and ATO guidelines, read the guide below.