If you work on a mine site, then there is a range of mining tax deductions available to you. With more than 20 years experience helping mining industry employees complete their tax returns online, we are well versed in every aspect of mining tax rules and regulations.
To ensure that you are fully aware of all the mining tax deductions available to you, Online Tax Australia has put together this extensive guide. As you’ll soon see, the majority of mining tax benefits come in the form of tax deductions for out-of-pocket expenses incurred throughout the course of the year that your employer does not reimburse.
Mining Tax Deductions: Meals and Travel
- You may claim the cost of meals when working overtime provided you have received a meal allowance from your employer which is based on an Industrial Award. AND that allowance is shown separately on your PAYG certificate. You can claim the actual cost of the meal or up to the Australian Taxation Office allowable limit without retaining receipts. Amounts claimed over that amount will need to be supported with receipts.
- You may claim the cost of travel (including any parking, tolls, taxis and public transport), if you are travelling to or from various mining sites, attending meetings, seminars, conferences, or training that are not being held at your usual place of work.
- If you are required to stay away from home overnight for the purposes listed above, you may be eligible for a tax claim for the cost of accommodation and any meals consumed.
- You may claim the cost of your personal car if it is used for work purposes, including travel to meetings, conferences or training that is not held at your usual place of work, or to visit your patients at their homes. If you do plan on claiming the cost of using your personal vehicle, you will need to keep a diary of the number of kilometres travelled.
- You may also claim the cost of travelling to and from the mine site, if you are required to carry a range of heavy or bulky tools and equipment that cannot be stored on location AND easily transported using public transport.
For more information on tax rebates for vehicles, visit: Vehicle Tax Deductions
Mining Tax Deductions: Uniforms and Protective Clothing
- You can claim the cost of your uniform, provided that it has your employer’s logo permanently affixed. For more information, visit Uniform Claims.
- You can claim a tax rebate for a number of protective clothing items, including:
- Sun protection items like sunscreen, sunglasses and hats
- Safety items such as glasses, gloves, steel-cap boots, masks and high-visibility clothing, overalls,
- Conventional clothing is not tax deductible, even if your employer requires that you wear specific items (such as business suits, specific coloured clothing, certain brands or items that your employer sells).
- You can claim the cost of renting, repairing and cleaning any of the work-related or protective clothing mentioned above, with the following provisions:
- If your tax deduction claim for laundry is under $150, no written documentation is required. The Australian Taxation Office calculates the cost of laundry at $1 per load of work-related clothing, or 50 cents per load if other laundry items are included.
- If you are claiming dry-cleaning or clothing repairs, you are required to keep receipts.
Mining Tax Deductions: Equipment and Tools
- You can claim a tax deduction for work related equipment and tools that cost less than $300 each.
- Items worth more than $300 each must be depreciated over the useful life. When you enter the item in our depreciation calculator, it will calculate the correct claim for the current year and carry the balance forward to claim in future years.
- If an item is used partly for business, and partly for private purposes, then you are entitled to claim the only the business-related portion.
- Typical equipment and tools eligible for a tax deduction for mine employees include:
- Power tools and equipment
- Electronic equipment such as computers, Ipads and mobile phones
- Materials or supplies that you buy for use at work such as safety gear, beacons, first aid and GPS equipment
Mining Tax Deductions: Other Work Related Expenses
There are a number of other work related expenses that may be claimed as a tax deduction by mine employees, including:
- Annual membership or union fees, such as CFMEU fees
- Fees to renew machinery operating licences and tickets required for your work (apart from a normal drivers licence)
Mining Tax Deductions: General Expenses
There is also a range of general tax deductions, available to all Australians regardless of profession or occupation, including:
- Conference and seminar fees
- Reference books
- Subscriptions to professional journals and magazines
- Telephone and internet fees (for the work related portion only)
- Home office costs
- Tax agent fees
- Donations to registered charities
- Income Protection Insurance
For further information, please visit Typical Tax Deductions
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