Whether you’re on a FIFO mine site or a local rig, drilling work is tough, dirty, and requires highly specialised gear. Keeping track of your drilling site work expenses shouldn’t be harder than the job itself. We’ve mapped out the specific tax deductions drillers can claim. Utilise these resources, industry tax tips, to sort out your drilling operator tax return and ensure you get your maximum FIFO driller tax refund.
Tax Guide for Mining, Construction and Resource Industry Drillers
Drillers work across mining, exploration, construction, geotechnical, water well, and blast-hole operations. Duties include operating drilling rigs, setting up equipment, maintaining rods and tooling, preparing sites, sampling core, managing drilling fluids, logging data, assisting geologists, performing safety checks, and complying with WHS and mine-site regulations. The role involves physical labour, heavy machinery, PPE, remote-site travel and shift work (including FIFO).
Typical Tax Deductions Include:
- Protective clothing & PPE – Steel-capped boots, hard hats, high-vis shirts, gloves, FR clothing, and wet-weather gear if required by employer
- Laundry of compulsory PPE/workwear – Deductible
- Tools & equipment – Spanners, pipe wrenches, hammers, small rig tools, headlamps (depreciate items costing over $300)
- Safety items – Sunscreen, insect repellent if employer-required for outdoor or remote work
- Training & tickets – HR licence, confined space certification, first aid, mine inductions, drilling competency training
- Phone & internet – Apportion for work-related use such as rosters, supervisor communication, and reporting
- FIFO or remote travel – Deductible only if not employer-provided
- Work-related travel – Travel between depots, sites, or supply locations (not home ↔ depot)
- Vehicle expenses – If using your own vehicle to transport tools between sites (logbook or km method)
- Reference materials – Rig manuals, safety guides, geology basics
- Home-office running expenses – For online training or reporting (use approved method)
- Toolboxes or bags – Deductible if used solely for transporting tools or PPE
Non-Deductible Expenses Include:
- Everyday clothing – Not deductible unless compulsory or protective
- Travel (home ↔ depot or airport) – Private commuting (not deductible)
- Meals, drinks, snacks – Private (not deductible)
- Personal tools used for home repairs – Must apportion between private and work use
- PPE not required by employer – Not deductible
- Home-office occupancy costs – Not deductible unless strict ATO criteria are met
- 100% claims (phone, laptop, vehicle) – Must apportion for private use
- FIFO meals and accommodation – Generally employer-provided; not deductible
Click here to see Tax Calculator for Driller.
Frequently Asked Questions
1. What gear is eligible for deductions?
Mandatory safety items like hard hats, steel-capped boots, safety glasses, and high-vis clothing are standard driller tax deductions. You can also claim the cost to wash your work gear.
2. How do FIFO travel deductions work?
You can’t claim the initial flight from your home city to the mine site if your employer covers it. But any out-of-pocket transit costs for training or driving between different remote camps are totally valid on a mining driller tax deductions claim.
3. Can I claim sun protection?
Because you’re exposed to the elements, SPF sunscreen, zinc, and UV-rated safety sunglasses are fully deductible on your drilling services tax return.
4. Are tickets and union fees allowed?
Yes. Any out-of-pocket costs for specialised drilling courses, first aid, or union fees are completely valid.
5. Do personal tools count?
If you purchase your own heavy-duty spanners, gauges, or tool bags, you can write them off. Items over $300 just have to be depreciated over time.
