• Mining site employees – deductions you may be able to claim

    This guide will help you to work out what work-related expenses you may be able to claim.

    As a mining site employee, here are some of the deductions you can and cannot claim.

    Car expenses for vehicles under one tonne

    You cannot claim deductions for your car expenses from home to work even if:

    • you work outside normal business hours
    • you are on call
    • you did minor work-related tasks on the way to work or home
    • you live a long distance from work, or
    • there is no public transport available.

    Travel from the mine site security checkpoint to the parking area is part of your home to work travel.

    You can claim deductions for your car expenses from home to work if you had to carry bulky tools and equipment that you are required to use at work, as long as there is no secure area provided to leave them on site.

    There are some changes to work-related car expense deductions from 1 July 2015. Below is a breakdown of the methods which applied from and before 1 July 2015.

    From 1 July 2015 – two methods

    The government has simplified car expense deductions for 2015–16 and future income years. From 1 July 2015, the one-third of actual expenses method and 12% of the original value method have been abolished.

    The two methods available from 1 July 2015 are:

    • cents per kilometre method
    • logbook method.

    See also:

    Before 1 July 2015 – four methods

    There are four methods for claiming work-related car expenses. The four methods are:

    • cents per kilometre
    • 12% of original value
    • one-third of actual expenses
    • logbook.

    You can use the method that gives you the greatest deduction.

    See also:

    Travel expenses for vehicles one tonne and over and other travel expenses

    If you are eligible to claim car expenses and your vehicle has a load capacity of one tonne or more, you cannot use the above four methods to calculate your deductions for car expenses. You can claim only your actual expenses.

    You cannot claim your travel expenses for travelling between your home and the place of departure as nominated by your employer under fly-in/fly-out arrangements.

    You cannot claim your relocation expenses for moving to a location near a new place of employment.

    Clothing

    You cannot claim a deduction for the cost of conventional clothing such as jeans and work shirts.

    You can claim deductions for the cost of compulsory uniforms and protective clothing such as overalls and steel-capped boots. However, you cannot claim a deduction if these items have been provided free of charge by your employer.

    You can claim your expenses for laundering compulsory uniforms and protective clothing.

    Self-education expenses

    You can claim your education expenses at university or TAFE if they relate to your current work and are not reimbursed.

    Example

    Doug is studying mining engineering while working as a clerk for a mining company. He is offered a mining cadetship on an understanding that he will continue his studies. Doug cannot claim his study expenses while employed as a clerk; he can claim his study expenses while employed as a cadet.

    End of example

    You cannot claim a deduction for a pre-vocational course such as a Certificate II in Coal Mining.

    Machinery operating licences or tickets

    You cannot claim a deduction for obtaining your first machinery licence or ticket.

    You can claim a deduction for any renewal fees for your machinery licence or ticket that is required for your current occupation.

    Tools and equipment

    You can claim an immediate deduction for tools or equipment which you use for your work and the cost does not exceed $300. If they cost more than $300, you can claim only a deduction for the decline in value. The Guide to depreciating assets can help you with calculating the decline in value.

    Union fees

    You can claim a deduction for union fees. However, you cannot claim a deduction for worker entitlement fund contributions and other similar charges outlined in your union fee statement.

    Phone expenses

    You can claim a deduction for the cost of work-related phone calls.

    You can claim a deduction for your phone rental if you can show you were on call or were regularly required to phone your employer while you were away from your workplace. You will need to apportion the rental cost between your work and private usage.

    See also:

    If you are uncertain about how this information applies to your personal situation, phone us on 13 28 61.

      Last modified: 05 Oct 2016QC 19678