Who This Guide Is For
This guide is for anyone living in Perth or wider Western Australia who needs to lodge a tax return for the 2025–26 financial year. Whether you're a FIFO worker in the Pilbara, an office professional in the Perth CBD, a small business owner in Fremantle, or a student juggling part-time work — this guide covers the WA-specific deductions, offsets, and common pitfalls that could affect your refund.
Perth's economy is shaped by the resources sector. According to the ATO, WA residents report some of the highest average taxable incomes in Australia, driven by mining, oil & gas, and engineering roles. This means your tax situation often involves niche claims — from remote area allowances to vehicle and travel deductions — that a generic tax guide won't cover.
Perth Tax Return Basics
Western Australia has the highest median taxable income of any state — approximately $68,000 for individuals in the 2023–24 data (latest ATO taxation statistics). For FY2025–26, the tax-free threshold remains $18,200, meaning the first $18,200 you earn is tax-free. Beyond that, the Stage 3 tax cuts (fully in effect) apply the following marginal rates:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $18,200 | 0% (Tax-free threshold) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Key takeaway for WA residents: If you earn $100,000, you're taxed at the 30% marginal rate under the Stage 3 cuts — down from the old 32.5% bracket that previously kicked in at $45,000. This means a Perth FIFO worker on $120,000 saves approximately $2,679 in tax compared to the pre-2024 system.
Perth residents who work in designated remote areas may also be eligible for the Zone Tax Offset — a non-refundable offset of $338 (Zone A) or $57 (Zone B) depending on your work location. Many FIFO workers stationed in the Pilbara or Goldfields qualify for Zone A.
What Perth Residents Can Claim
WA-specific deductions include:
1. FIFO / Remote Work Expenses
Fly-in-fly-out workers in WA's resources sector can claim:
- Travel between home and the airport when your employer doesn't provide transport
- Meals and accommodation if working away from your usual residence and not provided by your employer
- Protective clothing and equipment — steel-capped boots, hi-vis vests, hard hats, safety glasses
- Union fees and professional memberships (e.g., AMWU, CFMEU, Engineers Australia)
2. Vehicle and Travel Expenses
Perth's sprawl means many residents drive significant distances for work:
- Work-related car use — if you travel between job sites (not from home to your regular workplace) you can claim using the cents-per-kilometre method (88 cents per km for FY2025–26, capped at 5,000 km)
- Parking fees and tolls for work-related trips
3. Home Office Expenses
Perth has one of Australia's highest rates of hybrid working. You can claim:
- Fixed rate method: 70 cents per hour worked from home (covers electricity, internet, phone, stationery)
- Actual cost method: Claim the exact proportion of your home running costs based on a dedicated work area
4. WA-Specific Occupations
| Occupation | Key Deductions |
|---|---|
| Mining Engineer | PPE, site travel, remote area allowance, professional development |
| FIFO Tradesperson (Electrician, Fitter) | Tools, safety gear, union fees, airport parking |
| Healthcare Worker (Perth hospitals) | Scrubs/uniforms, AHPRA registration, conferences, professional indemnity insurance |
| Teacher (WA public/private schools) | Teaching supplies, home office, union fees (SSTUWA), professional development |
| Small Business Owner (Fremantle/Subiaco) | Home office, vehicle, equipment depreciation, accounting fees |
Calculation Example: FIFO Electrician
Let's walk through a realistic scenario for a Perth-based FIFO electrician earning $130,000 on a 2:1 roster (2 weeks on-site, 1 week off):
| Deduction Type | Amount |
|---|---|
| Work-related car use (200 trips × 30 km × 0.88/km, capped at 5,000 km) | $4,400 |
| Protective clothing & safety boots | $380 |
| Trade tools (depreciation on $3,000 toolkit) | $600 |
| Union fees (ETU) | $820 |
| Mobile phone (40% work use of $1,200 annual plan) | $480 |
| Airport parking for FIFO flights (employer not covering) | $960 |
| Total deductions | $7,490 |
At a 30% marginal rate, these deductions reduce tax payable by approximately $2,247, bringing the taxable income to $122,510. Note: the Zone Tax Offset of $338 may also apply if your worksite is in Zone A.
Common Perth Tax Mistakes
According to the ATO, FIFO and mining-related work expense claims are a key focus area for compliance reviews. The ATO cross-checks employer-reported data (via Single Touch Payroll and third-party reports) against your claimed deductions. Keep all receipts, rosters, and travel logs for at least 5 years.
Perth Tax Resources
- ATO Perth Office: 45 Francis Street, Northbridge WA 6003 — for in-person enquiries (by appointment)
- Tax Clinics: Curtin University and UWA both operate free tax clinics during tax season for low-income earners and small businesses
- WA Small Business Development Corporation: Free advisory service for WA small business owners at smallbusiness.wa.gov.au
- ATO Community: The ATO runs pop-up tax help sessions in regional WA towns including Kalgoorlie, Port Hedland, and Broome each year
Quick Checklist
- Confirm your PAYG payment summary or income statement is finalised in myGov
- Gather all FIFO-related records: rosters, flight bookings, airport parking receipts
- Calculate work-related car use (capped at 5,000 km using the 88 cents/km method)
- Check if you are in a Zone Tax Offset area (Zone A or B)
- Review private health insurance status to avoid the Medicare Levy Surcharge
- Collect receipts for protective clothing, tools, union fees, and professional development
- Lodge by 31 October 2026 to avoid late lodgement penalties
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
*Disclaimer: This article provides general information only and does not constitute financial or tax advice. Individual circumstances vary — consult a registered tax agent or the ATO (ato.gov.au) for guidance specific to your situation.*