Fly-in fly-out and drive-in drive-out employees

Special rules apply to employees who are working on a fly-in fly-out (FIFO) and drive-in drive-out (DIDO) basis. These employees:

  • do not have to maintain a home in Australia for their own use and enjoyment for the concessional tax treatment to apply for fringe benefits
  • are not limited to a 12 month period for the concessional tax treatment.

However, your employee must:

  • substantiate their expenses incurred on accommodation and food or drink (if the food or drink expenses are more than the Commissioner's reasonable amounts)
  • provide you with a declaration relating to living away from home.

FIFO and DIDO requirements

For your employee to have FIFO or DIDO status all of the following must apply:

  • Your employee works for a number of days on a regular and rotational basis and has a number of days off that are not the same days in consecutive weeks, such as a standard five day working week and weekend.
  • Your employee returns to their normal residence during the days off.
  • It is customary in the industry for employees performing similar duties to work on a rotational basis and return home during days off (for example, miners) and the work duties continue to be undertaken by other employees on a rotational basis while any particular employee is on their days off.
  • It is unreasonable to expect your employee to travel to and from work and the normal residence on a daily basis given the locations of the employment and their home.
  • It is reasonable to expect that your employee will resume living at the normal residence when the employment duties no longer require them to live away from home.
    Last modified: 15 Feb 2013QC 26545