Transport benefits for FIFO workers
Fly in and fly out? You could land some handy tax savings
Who can package Transport benefits for FIFO workers?
This salary packaging option is available to the following industries:
Speak to your employer to see if this benefit is offered as part of your workplace benefits.
You could save tax getting to and from your workplace
What is a FIFO worker?
A FIFO worker (Fly-In Fly-Out worker) is an employee who travels from their home location to a remote work site for a set period, then returns home for a break. This arrangement is common in industries like mining, oil and gas, and construction, where job sites are located in remote or rural areas far from major cities.
Key characteristics of FIFO work include:
- Roster system: Workers follow scheduled rotations (e.g., 2 weeks on-site, 1 week off).
- Accommodation provided: Employers typically provide housing and meals at or near the work site.
- Travel arrangements: Flights or other transport to and from the site are usually organized by the employer.
How can I benefit?
If you’re a FIFO worker as defined by the ATO, you may be eligible to salary package the cost of airfares to and from your usual place of residence to your workplace. You could also claim your airport parking.
What can I salary package as a FIFO worker?
Flights – Salary package the cost of flights between your usual place of residence and your usual remote area workplace using the travel provider’s booking portal.
Airport Parking – Salary package the cost of parking your car at the airport when you are undertaking travel under a FIFO arrangement. If you Fly-In Fly-Out of Perth Airport you have the option of requesting a parking card, which allows you to simply tap in and tap out each time you park.
How flight benefits work for FIFO workers
When your Maxxia account has been established you will receive a link and login details to the travel provider’s booking portal. All flights will need to be booked via this portal. You will need to have enough funds in your account to book your flights. Once booked the travel provider will issue your tickets directly to you.
Claiming for FIFO car parking is easy. Simply email your paid tax invoice and claim form to [email protected] and we’ll reimburse your before-tax funds directly to your nominated bank account. Or, you can use your parking card at Perth Airport.
Check out this video from our salary packaging series – it breaks down and explains the FIFO benefit in detail:
Potential tax benefit- Flights and Parking
Keith lives in Brisbane but works on a Fly-In-Fly-Out basis at a site located in the Pilbara for a large mining company throughout the year.
He earns $150,000 annually which includes his travel costs. Keith elects to salary package $10,000 in the Fly-In Fly-Out benefit each year to cover the costs of his airfares and airport parking. This could save Keith $3,814* per year.
You could save more if you earn more than Keith.
Potential tax benefit- Airport Parking only
Mark lives in Perth but works on a Fly-In-Fly-Out basis at a site located in the Goldfields for a large mining company throughout the year.
He earns $150,000 annually which includes his airport parking costs. Mark elects to salary package $2,500 in the Fly-In Fly Out Airport Parking benefit each year to cover the costs of Airport Parking. This could save Mark $1,075^ per year.
You could save more if you earn more than Mark.
What do I need to be aware of?
- The airfares must not be in respect to any associates, friends and family. They also must not be related to any holidays.
- Reimbursement is not available as an option for FIFO flights; we are unable to reimburse FIFO flights after you have paid for them.
- You can only claim FIFO Parking, or use your Perth Airport Parking Card, when parking at the airport or commercial car park in the vicinity of the airport to travel to your remote work site.
Finding out more
The first step to saving is by checking with your employer to see if this benefit applies to you.
Once you’ve confirmed that you’re good to go — or if you’re not sure — get in contact with us by calling 1300 123 123 or filling out a contact form here: Contact | Maxxia
Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Maxxia may pay and/or receive commissions in connection with its services.
*Salary Packaging: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $150,000 salary packages to a $10,000 per annum limit. PAYG tax rates effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Your disposable income will vary based on your income and personal circumstances.
^Salary Packaging: The estimated potential tax benefit is based on the assumption that an eligible employee with an annual salary of $150,000 salary packages to a $2,500 per annum limit. PAYG tax rates effective 1 July 2024 have been used. An average salary packaging administration fee has been used. The actual administration fee that applies to you may vary depending on your employer. Your disposable income will vary based on your income and personal circumstances.
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