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Australia FIFO & Remote Workers Tax Guide

Australian tax rules for FIFO and remote workers. The guide covers: the Zone Tax Offset (the 'ZTO') — the 'ZTO' is the 'tax offset' for the 'individuals who live in the 'remote areas' of Australia (the 'specified remote zones' under the 'Section 79A of the ITAA 1936'); the 'ZTO' is available for the 'taxpayers' who 'reside in the 'remote zone' for more than 183 days in the 'income year' (the '183-day test'); the 'remote zones' include: (i) the 'Zone A' (the 'very remote areas' — the 'central and the northern Australia' — the 'far north of the SA, the WA, the QLD, and the NT'), (ii) the 'Zone B' (the 'remote areas' — the 'areas outside the major cities and the regional centres'), (iii) the 'special zones' (the 'Christmas Island', the 'Cocos Keeling Islands', the 'Lord Howe Island', the 'Norfolk Island'); the 'ZTO amounts for the 2025-26 year': (i) the 'Zone A' — the 'maximum offset of $1,173 (the 'single') and $586 (each member of the couple)', (ii) the 'Zone B' — the 'maximum offset of $338 (the 'single') and $169 (each member of the couple)', (iii) the 'special zones' — the 'higher offsets' for the 'external territories'; the remote area deductions for the FIFO workers — the 'FIFO workers' (the 'fly-in fly-out workers' in the 'mining', the 'oil and gas', the 'construction') can claim the 'travel expenses' for the 'travel from the home to the 'remote work site'' — the 'travel is 'deductible' under the 'Section 8-1 of the ITAA 1997' if the 'travel is for the 'work purposes'' (the 'travel to the 'alternate workplace' is 'deductible' — the 'FIFO worker's home is the 'base of the employment''); the 'accommodation costs' at the 'remote work site' (the 'camp accommodation', the 'mine accommodation') are 'deductible' if the 'accommodation is for the 'work purposes''; the 'meals and the incidental expenses' at the 'remote work site' are 'deductible'; the FBT on the FIFO accommodation and the transport — the 'employer-provided accommodation' at the 'remote work site' (the 'camp', the 'mine accommodation', the 'village') is 'exempt from the FBT' if the 'accommodation is the 'remote area accommodation'' (the 'exempt accommodation' under the 'Section 47 of the FBTAA 1986'); the 'employer-provided transport' (the 'flights from the home to the remote site' — the 'FIFO flights') may be 'exempt from the FBT' if the 'transport is the 'work-related travel''; the 'living-away-from-home allowance (the 'LAFHA')' — the 'LAFHA' is the 'allowance paid by the employer to the employee' for the 'additional expenses of living away from the home' (the 'FIFO LAFHA'); the 'LAFHA' is the 'fringe benefit' — the 'FBT on the LAFHA' may be 'reduced' if the 'employee provides the evidence of the 'actual accommodation expenses''; the 'LAFHA' is 'available for the 'temporary living away from the home' (the 'FIFO rosters' and the 'short-term assignments').

Zone Tax Offset

  • Zone A offset: The 'maximum offset of $1,173 (the single)' for the 'very remote areas'.
  • Zone B offset: The 'maximum offset of $338 (the single)' for the 'remote areas'.
  • 183-day test: The 'taxpayer must 'live in the remote zone for more than 183 days'.

For the personal tax rates and the tax offsets, see our Personal Tax Guide →.

FIFO Deductions

  • Travel to the remote site: The 'FIFO travel from the home to the remote work site' is 'deductible'.
  • Accommodation and meals: The 'camp accommodation and the meals' at the 'remote site' are 'deductible'.
  • LAFHA: The 'living-away-from-home allowance' for the 'FIFO workers' may be 'subject to the FBT'.

For the travel allowance and the per diem rates, see our Travel Allowance Guide →.