FIFO Salary Packages Explained: Base Pay, Allowances & Perks

If you’ve ever looked into Fly-In Fly-Out (FIFO) work in Australia, you’ll know it’s a world of its own. These jobs often promise eye-catching salaries, paid flights, and extended time off – but the pay packet is more than just a headline number. Understanding how FIFO salary packages are built is essential before you commit to the lifestyle.

This guide walks you through the main elements – from base pay to allowances, tax quirks and extras – so you can see the full picture.

What Makes FIFO Different?

FIFO roles are common in mining, energy, large-scale construction, and other projects based in remote areas. Rather than relocating permanently, you fly to site for a set roster, work long shifts for a block of days or weeks, and then fly home for your rostered break.

The arrangement can be financially rewarding, but it comes with lifestyle trade-offs: long hours, time away from home, and a very structured work/rest cycle.

Base Pay – The Foundation

Your FIFO base salary is the core of the package and is usually set either as:

• An annual figure (e.g. $110,000 a year), or
• A daily/hourly rate multiplied by the number of shifts in your roster cycle.

The roster plays a big role in earnings. A 2-weeks-on/1-week-off schedule might attract a lower base than a 3-on/1-off or 4-on/2-off because the latter keeps you on site for longer stretches.

Some employers quote a total package that includes allowances in the headline number; others list them separately. Always ask whether the figure you’re given is base only or base plus extras.

The Many Types of Allowances

Allowances are payments on top of base salary, designed to offset costs or reward the demands of the role. Common FIFO examples include:

1. Site or Remote Allowance

A flat amount or percentage loading for working in isolated or harsh environments. This might be $15–25k a year or more for extremely remote sites.

2. Shift Loading

Additional pay for night shifts or rotating day/night rosters. The more disruption to your body clock, the higher this allowance tends to be.

3. Living Away from Home Allowance (LAFHA)

A payment to cover extra expenses when you’re away from your usual home. When structured correctly, parts of LAFHA (such as food and accommodation) can be tax-advantaged.

4. Travel Allowance

If flights are covered by the employer, this may not apply. If not, a travel allowance can help with getting to the departure airport or site.

5. Meal & Accommodation Allowances

When employers don’t provide camp housing or catering, they may pay a daily rate so you can organise your own.

The key question: Are these allowances paid year-round, including when you’re on leave, or only when you’re rostered on site?

Tax Factors Every FIFO Worker Should Know

FIFO salary is usually generous, but it can push you into higher tax brackets. It’s worth understanding how different elements are taxed:

• Base salary – taxed like any other wage.
• Most allowances – also taxable, unless they fall under specific fringe benefit concessions.
• LAFHA – potentially tax-free in part, if you meet the rules.
• Zone tax offset – generally not available unless you permanently reside in a designated remote zone.
• Flights – if your employer pays for them directly, no tax issue; if not, you usually can’t claim them as a deduction.

Many FIFO workers use salary packaging for certain benefits (like flights in some cases) to reduce taxable income. Speaking to a tax adviser who understands FIFO arrangements is a smart move.

Perks Beyond Pay

A FIFO salary package often comes with valuable non-cash benefits that make a big difference to your cost of living and quality of life on site:

• Company-paid flights to and from the site.
• Free accommodation in a mining camp or similar, often with a private room.
• All meals provided, saving you grocery costs.
• Gym, recreation rooms, or other on-site facilities at no cost.
• Rostered time off – extended breaks between swings.
• Training and qualifications paid for by the employer.
• Superannuation contributions on top of your base pay (12%).

Cost of Living – The Hidden Advantage

One of the big financial draw cards of FIFO is the low cost of living while you’re on site. If your housing and meals are covered, your only expenses might be personal items, phone/internet, and small luxuries.

The flipside? You’ll likely still maintain a home base – paying rent or a mortgage even when you’re not there. And with big chunks of time off, it’s easy to splurge on holidays, entertainment, and big-ticket purchases. The key is having a budget and sticking to it.

Pros and Cons – The Real Story

Pros:

• Above-average income.
• Many living costs covered.
• Blocks of free time to spend as you choose.
• Opportunities for fast career progression in some industries.

Cons:

• Long periods away from home and family.
• Intense work hours and potentially tough conditions.
• Temptation to overspend due to high income.
• Limited eligibility for some tax offsets.

Questions to Ask Before You Sign

1. What is the exact roster and shift length?
2. Does the salary include allowances, or are they separate?
3. Are flights and other travel fully covered?
4. What kind of accommodation and meals are provided?
5. Will I receive allowances when I’m on leave?
6. Is superannuation paid on the whole package or just base pay?
7. What are the training and career development opportunities?
8. Are there any bonus schemes or performance incentives?
9. Where is the official point of hire?
10. What happens when the project ends?

Final Take

FIFO work can be a powerful way to boost your income and build savings quickly – especially if you take advantage of included housing, meals, and travel. But the lifestyle isn’t for everyone. By digging into the details of your FIFO salary package, understanding the tax implications, and keeping an eye on spending, you can make FIFO work for you both financially and personally.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.