FIFO Workers

I'm flabbergasted and asking for back pay

Perusing a Facebook thread on FIFO workers and tax claims, no wonder the ATO has issues with some claims.

The below posted from an accountancy firm also stood out (wait, what... you can claim your grog?) and not the first time mentioned in the thread

FIFO workers work long distances from their home and consequently fly to and from work (every 2 – 6 weeks).

Typical tax deductions:

• Motor vehicle travel to and from work if required to transport bulky equipment and there is no secure storage at the workplace.
• Incidental expenses at the mining camps including alcohol, snacks, toiletries, movies, etc.
• Telephone and internet - work %.
• Protective clothing and equipment including fire-resistant clothing, safety-coloured vests, steel-capped boots, breathing masks, gloves, and overalls. Compulsory work uniform branded with the employers logo.
• Sun protection costs including sunglasses and sunscreen lotions - includes prescription sunglasses which are photo-chromatic glasses which have filtering and glare-reducing qualities similar to sunglasses.
• Union fees, machinery operating licences, registrations, and subscriptions.
• Computers, travel bags, overnight bags, suitcases, luggage trolleys, tools and equipment.
• Medical examination, drug or alcohol tests for work.
• Courses, seminars and self-education expenses. Home office running expenses. Overnight travel expenses attending different workplaces or for training.

Non-deductible expenses:

Travelling between home and the place of departure (airport) under fly-in/fly-out arrangements – e.g. taxi fares to the airport are non-deductible.
Relocation expenses if required to relocate closer to a new employment site.
Security checks prior to getting a job.

Tax Strategies

4 Transporting Heavy or Bulky Equipment
13 Self Education Expenses
31 Sunglasses, Sunscreens & Cosmetics
41 Computers, Tools, Equipment, and Other Assets
43 Protective Clothing
45 Compulsory Work Uniform
165 Union Fees, Licences, Registrations and Subscriptions
210 Phone & Internet
240 Home Office Running Expenses
247 Overnight Travel Expenses

 

I call BS.

Since when is Facebook a reliable source

Flabbergasted is putting it politely. The accounting firm must be sourcing new clients with bait and switch marketing.

Hang on, I'll just throw the receipt for the new HiVis fleecy jumper into my tax folder for next week's appointment..........

 

Just about all of the items listed are usually supplied by the employer.
Marg

 

Under S.900-60 of the ITAA 1997, an employee can claim a deduction for the cost of meals consumed at work without obtaining written evidence, where all the following conditions are satisfied:

(a) A meal allowance is paid or payable to the employee to enable the employee to buy food and drink in connection with overtime that the employee works.

(b) The allowance is paid or payable under an ‘industrial instrument’ (i.e., a law of the Commonwealth or of a State or Territory, or an award, order, determination or industrial agreement in force under such a law).

(c) The amount claimed (for meal costs incurred) by the employee is covered by the allowance and does not exceed the Commissioner’s reasonable amount for overtime meal expenses (i.e., $30.60 for the 2019 income year – refer to TD 2018/11).

An employee in receipt of an overtime meal allowance cannot automatically claim a deduction up to the Commissioner’s prescribed reasonable amount. That is, a deduction can only be claimed for meal expenses actually incurred. Refer to S.8-1 of the ITAA 1997.

The ATO has also held that the food and drink must be consumed during the overtime period. Consuming alcohol during working hours would generally be considered a breach of a condition of employment and I suspect the ATO would deny such a claim.

 

Here's two links showing

Link 1

Link 2

 

Ten Unusual Work Deductions STP Tax

1. Adult industry workers can claim costumes, lingerie, fetish equipment, and adult novelties – if used solely for income earning purposes.
2. Bar staff can claim a deduction for the cost of making up cash or bar shortages.
3. Security guards can claim a deduction for food, veterinary expenses and registration costs of their guard dog.
4. Performing artists can claim a deduction for theatre and films that that they see for research or work purposes.
5. Police officers can claim for bulletproof jackets, vests, body armour and guns.
6. Authors and editors can claim travel expenses incurred for research related travel or short writing trips.
7. Chefs can claim a deduction for eating out at restaurants for research and work purposes.
8. Employees who work outside can claim their makeup costs where the makeup includes a sun protection component.
9. FIFO workers can claim incidental expenses at mining camps including alcohol, snacks, toiletries, and movies.
10. Police officers can claim payments made to informants including cash, food, and cigarettes (provided that the payments are authorised by the police service and not reimbursed.

 

Wonder how the ATO would know the dildo isnt used for private purposes ?

 

Would need to apportion it. I suggest a diary of usage habits, or excel spreadsheet perhaps better

 

From packets of cigarettes to overseas holidays: The bizarre ways Australian workers try to boost their tax returns

 

Just read this..

A car detailer claimed work related laundry expenses of over $20,000 per year over two years. It seems that the taxpayer worked out how many hours he spent doing his laundry then multiplied that by what he thought was a reasonable hourly rate ($227 per hour because his personal time was valuable). Needless to say, the taxpayer’s claim was reduced to $0.

 

Would be funny if they hit him with recklessness and 50% penalty so he ends up paying the ato so he can do his own laundry

 

Could he be charged with laundering offences?

 

He was also attempting to do wash sales

 

A couple more

An advertising manager claimed $1854 for clothing and laundry expenses. Her claim was for clothing purchased at popular fashion retail stores.

When we contacted her, she said she represented her company at work functions and awards nights and was required to dress a certain way.

We explained that expenses for conventional clothing are not deductible, even if you are required to wear them for work, and/or only wear them for work. The taxpayer’s clothing and laundry claim was disallowed in full, and a penalty for failing to take reasonable care was applied.

and..

A lab technician claimed $2500 for the cost of purchasing protective boots and laundering his work uniform.

He advised he had a very dirty job and mostly washed his clothes at the laundromat for around $9 a wash and $3 for drying. Unfortunately he did not keep any receipts, so we could not verify his claim.

We reduced his claim for laundering his work uniform to $144, using the ATO’s reasonable basis.

 

These are quite usual things tax agents hear. We could write a book....