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FIFO Workers and Travel to Site

Discussion in 'Accounting & Tax' started by MikeLivingTheDream, 4th Jul, 2015.

  1. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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    Philippines
    Understand not really property related but a lot of FIFO workers are investing in property. Seems to be a huge misconception out there that parking at the airport, airfares to the mining site, etc are deductible. This is generally not the case.

    This was actually discussed in Case V111 88 ATC 712, where a taxpayer worked at a power station site located approximately 400 km from his home. Each Monday the taxpayer departed his family home and travelled by car directly to the work site, and commenced the return journey on the following Saturday. During the week the taxpayer resided in employer provided accommodation at a camp near the work site. In his judgment, P.M. Roach (Senior Member) stated at p 714:

    • ... nothing in High Court decisions turns on the significance of the length of distance travelled (even 400 kms each way) or the frequency of such travel (once per week each way). Although the High Court accepted that incurring the expense was a necessary prerequisite to the earning of income, it none the less held that the expenses of getting to and from work were not expenses incurred 'in the course of' deriving income by working'.

    Also some Private Binding Rulings which discuss the same thing and the fact these expenses are NOT deductible.

    https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/83919.htm

    https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/85122.htm

    https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/1012150861553.htm
     
  2. Redwing

    Redwing Well-Known Member

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    Most FIFO workers I know realise this

    Maybe confused with the below?

     
  3. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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    No redwing that is for fbt purposes where the employer is paying the costs.

    You would be surprised how many FIFO workers think you can claim travel to the site
     
  4. Redwing

    Redwing Well-Known Member

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    some companies salary package travel costs in getting to their primary employment location, then of course the employers pay for charter travel from that location to site

    I can imagine as a shut down worker you maybe able to claim travel if going to different sites and taking specialist tools or equipment?
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I have a few FIFO mining workers and there is a general misbelief that travel to get to / from the FIFO flight point is deductible.

    eg Home in Fremantle. Perth Airport is FIFO point. Mine in Pilbara. Taxpayer seeks to claim substantial deductions for travel between Freo and Perth.

    All private and non-deductible. Same principles as a bank worker catching a train to the city.