Mining site employee expenses T–W

Tools and equipment

You can claim a deduction for tools and equipment you use to perform your duties as a mining site employee. For example, a drill or shovel.

You can only claim a deduction for the work-related use of the item.

If the tool or equipment cost you $300 or less, you can claim it in the year you buy it, if:

• you use it mainly to produce non-business assessable income
• it's not part of a set that together cost more than $300
• it's not identical, or substantially identical to, other items that together cost more than $300.

You can claim a deduction for the cost over the life of the item (that is, decline in value), if the tool or equipment:

• cost more than $300
• is part of a set that together cost more than $300
• is identical, or substantially identical to, other items that together cost more than $300.

If you bought the tool or item of equipment part way through the year, you can only claim a deduction for the decline in value for the period of the income year that you own it. You also need to apportion your deduction if you use the item for private purposes. To work out your deduction use the Depreciation and capital allowances tool.

You can also claim a deduction for the cost of repairs to tools and equipment that you use for work purposes.

You can't claim a deduction for tools and equipment that your employer or a third party supplies for use.

 

Travel expenses

You can claim a deduction for travel expenses you incur when your work requires you to:

• travel for work
• sleep away from your home overnight in the course of performing your employment duties.

Expenses you can claim include your accommodation, meals and expenses which are incidental to the travel (incidentals). For example, if you're required to travel to a remote mine site for 3 nights to carry out inspections.

You can't claim a deduction for travel expenses where you don't incur any expenses, because:

• you slept in accommodation your employer provides
• you eat meals your employer provides
• your employer or a third party reimburses you for any costs you incur.

You also can't claim a deduction if you are not required to sleep away from your home overnight in the course of performing your employment duties. For example, if you fly interstate for work and return home the same day, or you choose to sleep near your workplace rather than returning home.

Receiving an allowance from your employer doesn't automatically mean you can claim a deduction. In all cases, you must be able to show:

• you were away overnight
• you have spent the money
• the travel directly relates to earning your employment income
• how you work out your claim.

If you receive a travel allowance you must include it as assessable income in your tax return unless all of the following apply:

• the travel allowance is not shown on your income statement or payment summary
• the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
• you spent the whole allowance on deductible accommodation, meal and incidental expenses (if applicable).

You must keep written evidence (such as receipts) for all your overseas accommodation expenses regardless of whether you receive an allowance. You don’t have to keep written evidence for other travel expenses if both of the following apply:

• you received a travel allowance from your employer for the expenses, and
• your deduction is less than the Commissioner’s reasonable amount.

If you claim a deduction for more than the Commissioner’s reasonable amount you need to keep receipts for all your expenses, not just for the amount over the Commissioner’s reasonable amount.

Even if you are not required to keep written evidence such as receipts, you must be able to explain your claim and show you spent the amounts. For example, show your work diary, that you received and correctly declared your travel allowance and bank statements.

A living-away-from-home allowance (LAFHA) is different from a travel allowance. An allowance is a LAHFA if both of the following apply:

• your employment duties require you to live away from your normal residence
• some or all of the allowance is to compensate you for the additional non-deductible expenses and other additional disadvantages you incur because you have to live away from your normal residence.

A LAFHA is non-assessable non-exempt income, so it doesn't need to be included as income in your tax return.

Circumstances may be different for fly in, fly out (FIFO) workers.

 

For more information, see:

TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024-25 income year?

TR 2021/4 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances

Union and professional association fees

You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.

For more mining site employee expenses, see:

• Mining site employee expenses A–F
• Mining site employee expenses G–O
• Mining site employee expenses P–S