Tax Deductions for Mining Industry Workers
FIFO workers and miners often have big deductions for protective equipment, travel to remote sites, and self-education. If your employer doesn't reimburse it, you can probably claim it.
This guide covers 27 deduction categories with 229+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
💰 Real-World Example
Brent: Brent is a FIFO drill operator in the Pilbara. He claimed protective boots and clothing ($450), safety glasses ($120), tools not provided by employer ($600), and self-education for a cert IV in mining operations ($1,200).
Result: ~$830 back on a $120k salary
Illustrative example only. Your situation may differ.
Deduction Categories
27
Specific Items
229
Income Types
0
Work-Related Deductions (27)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive during the income year as a mining site employee in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, tool allowance
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, underground allowance
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- The following table sets out allowances you may receive and when you can claim a deduction.
- Example of allowance type
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous, or for industry peculiarities
- Underground allowance
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Joe is a leading hand on a mine site. For each week he is a leading hand, his employer pays him an allowance.
- At the end of the income year, the allowance is shown on Joe's income statement.
- Joe must declare the leading hand allowance as income in his tax return.
- Joe can't claim a deduction because he doesn't incur any deductible expenses. The allowance compensates him for his special duties. It's not to help pay for any work-related expenses that Joe may incur.
- Wei-Li is an electrician on a mine site. Wei-Li's employer doesn't supply her with the tools she requires to carry out her duties. Instead, they pay her a weekly allowance of $16 which is shown on her income statement at the end of the income year.
- During the income year, Wei-Li buys some hand tools which she uses only for carrying out her employment duties. The hand tools cost of $243.
- Wei-Li must declare the total allowance of $832 ($16 × 52 weeks = $832) as income in her tax return. She can also claim a deduction of $243 for the hand tools. .
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- Deductions for work expenses
- Record keeping for work expenses
Car expenses
- live a long way from your usual or regular workplace
- have to work outside normal business hours (for example, weekend or early morning shifts).
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job driving a truck in the mines, to your second job as a bartender
- to and from an alternative workplace for the same employer on the same day – for example, travelling between mining sites for your employer
- from home directly to an alternative workplace – for example, travelling from home to a training venue to attend a work-related training course.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: travelling to and from alternative workplaces
- Kevin is a site supervisor and drives his own car between various mining sites throughout the day to inspect their work. After inspecting the last site, Kevin travels directly home.
- Kevin can claim a deduction for the expenses he incurs when he is travelling to alternative sites and then home. Kevin can't claim a deduction for travel between his home and regular place of work as this is considered private travel.
Example: transporting bulky equipment for work purposes
- April is an employee on an underground mining site and is required to provide her own tools and equipment to perform her work duties. The tools are heavy and can only be transported using a car. Her employer doesn't provide a secure tool storage area at her workplace, so she must transport her bulky tools and equipment to and from work every day.
- April can claim a deduction for the expenses she incurs to transport her tools and equipment between her home and work.
Child care
- You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features or functions that you wear to protect you from specific risks of injury or illness at work. For example, hi-vis vests, steel capped boots and fire-resistant clothing. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks, closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either you as an employee working for a particular employer
- the products or services your employer provides
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing
Example: non-deductible conventional clothing
- Richard wears jeans with t-shirts or long sleeve shirts at work as they are comfortable. While the jeans and shirts afford Richard some protection from skin abrasions, they provide only limited protection from injury.
- The items are commonly worn as conventional clothing and aren't designed to protect the wearer to cope with rigorous working conditions.
- Richard can't claim a deduction for the cost of buying or cleaning these items because they are private in nature.
Example: protective clothing
- Rafael is a miner who wears steel-capped boots and a hi-vis vest when working at the mine site. These items protect Rafael from the specific risks of injury or illness at work.
- As Rafael buys these items himself and isn't reimbursed by his employer, he can claim a deduction for the cost of these items as they are protective clothing.
Example: compulsory uniform with a logo
- distinctive items with the employer's logo
- compulsory for her to wear at work.
- Jessica is a mining engineer and is required to wear a shirt provided by her employer when she is at work. Her shirt is embroidered with her employer's logo. Jessica is also required to wear plain black pants and black shoes.
- Jessica can’t claim the cost to buy, repair or replace her black pants or shoes as they are conventional items.
- Jessica can't claim the cost of buying the embroidered shirts as her employer provides these.
- Jessica can claim a deduction for the cost of washing the embroidered shirts as they are:
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
- You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.
Example: heavy vehicle permit
- $45 per year to renew his drivers licence
- $65 per year to renew his truck licence
- $73 to apply for the heavy vehicle permit.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- You can claim a deduction for the cost of first aid training courses if you are both:
- You can't claim a deduction if your employer pays for or reimburses you for the cost of the course.
Fitness expenses
- Mining site employee expenses G–O
- Mining site employee expenses P–S
- Mining site employee expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working. These are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You only claim a deduction for the work-related use of the item.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional, everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear at work from one of the categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: deductible laundry expenses for protective clothing
- Kostas' employer provides him with protective uniforms that he is required to wear while working on a mine site. These uniforms are part of the workplace health and safety regulations.
- Kostas can claim a deduction for the cost of laundering his uniforms.
- Kostas estimates he washes his uniforms separately 3 times per week and worked for 48 weeks of the year.
- Kostas calculates his laundry claim as follows:
- 3 × 48 weeks × $1 per load = $144
Example: deductible laundry expenses
- Lynette wears a uniform to work each day which is supplied by her employer. She washes, dries and irons the uniforms in a mixed load of washing twice a week. Lynette works 48 weeks during the year.
- Her claim of $48 for laundry expenses is worked out as follows:
- Number of claimable laundry loads per week × number of weeks = total number of claimable laundry loads
- Calculated as: 2 × 48 weeks = 96
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- Calculated as: 96 × $0.50 = $48
- As Lynette's total claim for laundry expenses is under $150 she isn't required to have and provide written evidence of her laundry expenses. Although she doesn't require written evidence to prove her claim for laundry, if asked, she will still be required to show how she worked out her claim.
Example: Non-deductible laundry expenses
- Jason buys heavy duty cargo pants that he wears in the office when he isn’t onsite. The pants don't have his employer’s logo or branding on them and aren't part of a compulsory uniform.
- Jason can't claim a deduction for the purchase or laundering of the pants as they are conventional clothing and are private in nature.
Licences, permits and cards
- You can’t claim the cost of getting your initial licence, regulatory permit, cards or certificates to get a job. For example, a forklift licence or truck licence.
- You can claim a deduction for costs you incur to renew your licence, regulatory permit, card or certificate to perform your work duties. For example, if you need to have a truck licence to get your job, you can’t claim the initial cost of getting it. However, you can claim the cost of renewing it during the period you are working.
Example: heavy vehicle permit
- Sean drives trucks and heavy vehicles around the mining sites. Sean is required to have a drivers licence, truck licence and heavy vehicle permit to complete his employment duties.
- Sean pays for his heavy vehicle permit and truck licence prior to starting his job.
- He can't claim a deduction for the licence expenses he incurs to gain employment. However, he can claim the cost of maintaining his heavy vehicle permit and truck licence as it is a requirement for his ongoing employment.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties ( travel expenses ).
- You can't claim a deduction for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Music streaming services, CDs, audio books or podcasts
- You can't claim a deduction for the cost of music streaming services, CDs, audio books, podcasts or devices that you use at work. Even if they're used to keep you motivated or occupied at work, these items aren't essential to earning your income. They are private expenses.
Newspapers and other news services, magazines and professional publications
- a direct connection between your specific work duties and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers and other news services, magazines and professional publications are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement or payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for your expenses.
Example: overtime meal deduction
- Mining site employee expenses A–F
- Mining site employee expenses P–S
- Mining site employee expenses T–W
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Sebastian uses his mobile phone for work purposes. He is on a set plan of $49 a month.
- He receives an itemised account from his phone provider each month that includes details of his individual calls.
- At least once a year, Sebastian prints out his account and highlights the work-related phone calls he made. He makes notes on his account for the first month about who he is calling for work – for example, his manager and site safety officers.
- Out of the 300 phone calls he has made in a 4-week period, Sebastian works out that 30 (10%) of the individual phone call expenses billed to him are for work. He applies that percentage to his monthly plan amount ($49 a month).
- Sebastian calculates his phone calls for work purposes as follows:
- Total work phone calls÷ total number of phone calls = work use percentage for phone calls
- 30 ÷ 300 = 0.10 (that is 10%)
- Sebastian can claim 10% of the total bill of $49 for each month for work purposes, that is:
- $49 × 0.10 = $4.90
- Sebastian worked for 46 weeks of the year (10.6 months), so he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $4.90 = $51.94
Example: work and private use
- Sylvette uses her computer and personal internet account at home to access her work emails. Sylvette also uses her computer and the internet for private purposes.
- Sylvette's internet use diary showed 40% of her internet time was for work-related activities and 60% was for private use. As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 0.40 = $480 as work-related internet use.
- If anyone else was accessing the internet connection, Sylvette needs to reduce her claim to account for their use
Protective items
- to protect you from the real and likely risk of injury or illness in your work environment
- while performing your work duties.
- supplies the protective items
- reimburses you for the cost you incur to buy protective items.
Example: protective equipment required for employment duties
- Barry is an underground miner. He must wear safety glasses, a hard hat and a breathing mask whilst working. These items protect Barry from the real and likely risk of injury or illness that he may be exposed to while working in the mines.
- Barry is required to buy these items himself and is not reimbursed by his employer.
- Barry can claim a deduction for the cost of the items. He is also able to claim any costs he incurs to repair, replace or clean these protective items.
Example: protective items provided by the employer
- Alexa is a machine operator within a mining site. Her employer requires her to wear earmuffs or earplugs at all times to protect her hearing from being injured while working. Her employer supplies her with these items. There is a direct connection between Alexa's employment duties and the need for these protective items.
- As Alexa's employer provides the protective equipment, she can't claim a deduction as she has not incurred any cost.
- If Alexa had purchased the hearing protective equipment herself and was not reimbursed by her employer, she could claim a deduction.
Removal and relocation expenses
- You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for your work-related use.
Example: deduction for repair cost to equipment
- Piper is a general mining employee who regularly uses a range of tools and equipment in her job. Her jack hammer has stopped working and she had to pay $200 to get this repaired. Piper only uses this jackhammer for work-related purposes. She was not reimbursed by her employer.
- Piper can claim a deduction for the costs she incurs to repair her jack hammer.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment
- enables you to get employment or change employment.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: deductible self-education expenses
- maintain or improve the specific skills and knowledge he needs for his duties as a mining engineer cadet
- results in, or be likely to result in, an increase in Doug's income from his employment as a mining engineer cadet.
- Doug is studying mining engineering while doing clerical work for a mining company. His duties as a clerk include data entry, preparing reports, filing and despatching income and outgoing mail.
- After he has completed his first year of study, Doug is offered a mining engineer cadetship with his current employer, with a condition that he will continue his studies. As a mining engineer cadet, Doug works closely with a mining engineer from the company who oversees any work he does.
- Doug can't claim his study expenses he incurs while he is employed as a clerk. The skills and knowledge Doug needs to do his job as a clerk would not be improved or maintained as a result of studying mining engineering. Doug incurs the expenses to change his employment.
- However, once he begins his mining engineer cadetship with his employer, his study expenses can be claimed as a deduction. This is because his study will:
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work as a mining site employee.
- The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as attending a conference while on a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course, for example you add a holiday of one week to a training course that runs for one week, then you can only claim the work-related portion.
Example: deduction for a training course
- Alphonse is a diesel mechanic. He is required by his employer to pay for workplace health and safety training as an ongoing condition of his employment.
- Alphonse can claim a deduction for the cost of the training as it directly relates to his current employment.
Example: training course not deductible
- Alphonse is also paying for and undertaking a course in leadership in the hope it results in future promotion opportunities.
- As the course doesn't directly relate to his current role as a diesel mechanic, Alphonse can't claim a deduction for the expense.
Sunglasses, sunhats and sunscreens
- must work outdoors in the sun for prolonged periods
- use these items to protect you from the real and likely risk of illness or injury while at work.
- You can claim a deduction for the work-related use of sunglasses, sunhats and sunscreen lotions if you:
- This includes prescription sunglasses and anti-glare glasses.
- You can only claim a deduction for the work-related use of the products if you also wear them for private purposes.
Example: claiming sunglasses
- Mining site employee expenses A–F
- Mining site employee expenses G–O
- Mining site employee expenses T–W
Tools and equipment
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Example: claiming a deduction for the decline in value for tools and equipment
- Jorge buys a range of tools including a drill ($350), spanner set ($600) and welding equipment ($2,000) to carry out his employment duties.
- Jorge uses these tools at home for DIY activities. Jorge applies a reasonable basis and determines that he uses the drill and spanner set 60% of the time for work purposes and the welding equipment 80%.
- An immediate deduction can't be claimed by Jorge for any of the tools or equipment he buys because they all cost more than $300.Jorge can claim a deduction for the decline in value of the drill, spanner set and welding equipment over the effective life of each of the tools. However, he must reduce his decline in value deduction to account for his private use of the tools.
Example: Purchasing tools and equipment costing less than $300
- he uses the tools and equipment mainly to earn his employment income and he doesn't use them for private purposes.
- the hammer and chisel are not part of a set that together cost more than $300
- the hammer and chisel are not identical, or substantially identical to each other.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you slept in accommodation your employer provides
- you eat meals your employer provides
- your employer or a third party reimburses you for any costs you incur.
- you were away overnight
- you have spent the money
- the travel directly relates to earning your employment income
- how you work out your claim.
- the travel allowance is not shown on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole allowance on deductible accommodation, meal and incidental expenses (if applicable).
- you received a travel allowance from your employer for the expenses, and
- your deduction is less than the Commissioner’s reasonable amount.
- your employment duties require you to live away from your normal residence
- some or all of the allowance is to compensate you for the additional non-deductible expenses and other additional disadvantages you incur because you have to live away from your normal residence.
Example: living away from home allowance
- Joe is a project manager. He lives in the city with his family and applies for a job to work on a mining project near a country town for 12 months. It is not possible for Joe to travel to and from the project site each day due to the distance between his home and the site.
- Joe's employer pays him LAHFA to compensate him for the additional living expenses, including his accommodation and meal costs, while he is living away from his normal residence to work on the project.
- The allowance isn't on Joe's income statement because it is non-assessable non-exempt income.
- Joe is not travelling overnight for work. He can't claim a deduction for his accommodation and meal costs while living away for work because they are private living expenses.
Example: reasonable allowance amount
- it isn't shown on his income statement
- it's less than the reasonable allowance amount
- he spends it all to cover his travel expenses.
Union and professional association fees
- Mining site employee expenses A–F
- Mining site employee expenses G–O
- Mining site employee expenses P–S
✅ Deduction Checklist for Mining Industry Workers
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits mining industry workers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Not claiming FIFO travel expenses correctly
Fix: Travel from the airport to the mine site may be deductible, but home-to-airport generally isn't. Check if your employer covers FIFO flights.
Forgetting sun protection for outdoor work
Fix: Sunscreen, sunglasses, and wide-brim hats for outdoor mining work are deductible.
Missing safety course and certification costs
Fix: If you paid for mine safety inductions, first aid, or ticket renewals, they're deductible.
🔍 ATO Audit Flags
FIFO travel claims when employer provides flights
If your employer flies you to site, you can't also claim the travel. ATO cross-checks FBT records.
Large tool claims without evidence
Mining companies usually provide tools. Personal tool claims need clear evidence of purchase and work use.
Data sourced from the Australian Taxation Office — Mining Industry Workers Guide. Last updated: 2026-03-14.