Janine Leafe: Are you a FIFO worker? Here's your essential tax-time tool kit
As the end of the financial year rolls in, most Australians start sifting through receipts and cringing at the thought of tax time.
But for WA's fly-in, fly-out workforce, EOFY isn't just about ticking the tax-return box — it's a golden opportunity to assess your financial strategy and set yourself up for long-term security.
With high earning potential, complex income structures, time away from home, and often a lack of routine financial planning, it's essential to approach EOFY with a clear plan for the next 12 months.
Here's a practical EOFY checklist designed to help FIFO workers make the most of their money:
Most FIFO workers earn above-average incomes, which can push them into higher tax brackets.
That's why it's crucial to gather income information such as PAYG summaries, interest statements, dividends and rental income if applicable.
If you've worked multiple contracts or sites throughout the year, don't forget to declare all sources. The Australian Taxation Office is increasingly emphasising data-matching, so accuracy is your best ally.
Working remotely often means hefty out-of-pocket costs. Depending on your role and circumstances, you may be entitled to claim expenses such as:
Remember, the ATO has tightened its rules regarding deduction claims, so keeping solid records like receipts and logbooks is key.
I'd suggest using a tool to collate all the receipts throughout the financial year, such as the free app ReceiptHub for any employment-related expenses.
You can also Google a list of possible deductions for your role/industry to make sure you haven't missed anything.
Some FIFO employees receive LAFHA as part of their package. This can help offset additional costs incurred while working away, such as meals and accommodation.
But it's not always tax-free, and eligibility varies, so check with your employer and tax agent to make sure it's correctly reported.
Many FIFO workers don't realise they could be eligible to boost their retirement savings and reduce taxable income through voluntary contributions.
If you haven't hit your concessional contribution cap $30,000 this financial year, there might be room to top up. Engage a financial adviser or accountant for advice on this and how much is required to reach this target.
According to the ATO website, personal contributions may be tax-deductible, and if your partner earns less than $40,000, spouse contributions can offer extra tax benefits. This is dependent on your savings position and maximised by those with significant savings balances.
Here's where I lean in as a mortgage broker. EOFY is the perfect time to take a closer look at your existing loans, whether it's your mortgage, investment property finance, or even personal loans.
With interest rates fluctuating, even a small rate change can lead to big savings across a high-value loan.
For FIFO clients, I often recommend offset accounts or redraw features to keep cash flow flexible between swings and rosters.
Have a plan. As a FIFO worker, you're sacrificing time at home, often in tough conditions, to build a better future. So make EOFY your reset button.
Those who fail to plan, plan to fail. It begins with a step-by-step approach.
Pay off small debts, as personal debt quickly diminishes cash flow. Pay down your owner-occupied mortgage to a reasonable level that could be maintained if you left FIFO employment to work locally. Then use any additional cash flow to invest and/or save.
Navigating income tax, investment strategy, and home loan reviews is a full-time job. Seek a combination of independent advice from a good accountant, financial adviser, and mortgage broker to help you act on smart strategies.
Many FIFO workers don't work weekday office hours, but FIFO finance specialists offer after-hours consultations and digital meetings to help you stay on top of your finances.
Your position is unique, so please don't take financial advice from your colleagues on site. Context is everything.
And remember, engaging in independent and collaborative advice from your broker, accountant and financial planner increases the likeliness of achieving your goals and sets you up for financial success.
Janine Leafe is a FIFO finance specialist and director of Fluoro Finance
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