---
title: "Tax Information for Australian Roster Workers — ATO Rates & Brackets 2025–26 | PayByRoster"
url: https://paybyroster.com/tax-info
description: "Australian income tax rates, Medicare Levy, and tax considerations for FIFO employees, nurses, shift workers, and roster-based workers. Current ATO rates for 2025–26."
lang: en
---

# Tax Information for Australian Roster Workers

Understanding how income tax works is essential for roster workers, FIFO employees, nurses, emergency services, and shift workers across Australia. This guide explains Australian tax rates, deductions, and considerations specific to roster-based employment.

## Progressive Tax Rates 2025-26

Australian income tax is levied at progressive rates. Tax brackets start at 0% (the tax-free threshold) and increase progressively up to 45% for incomes over $190,000. In addition to income tax, most workers pay the Medicare Levy and may be entitled to tax offsets.

### Current Tax Rates for Australian Residents

Tax Year 2025-26:

| Income Range | Tax Rate | Tax Calculation |
| --- | --- | --- |
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 16% | 16¢ for every $1 over $18,200 |
| $45,001 - $135,000 | 30% | $4,288 plus 30¢ for every $1 over $45,000 |
| $135,001 - $190,000 | 37% | $31,288 plus 37¢ for every $1 over $135,000 |
| Over $190,000 | 45% | $51,638 plus 45¢ for every $1 over $190,000 |

**Note:** These rates apply to Australian residents for tax purposes. Non-residents and working holiday makers face different rates (see below). These rates took effect on 1 July 2024 and remain unchanged for 2025-26.

## Tax-Free Threshold

If you are an Australian resident for tax purposes, income under $18,200 per year has a tax rate of 0% and is not taxed. This is known as the tax-free threshold.

Important for roster workers with multiple jobs:

- You can only claim the tax-free threshold on ONE employment income source
- If you work FIFO and have a side business during leave, claim it on your primary income
- Nurses working hospital shifts plus agency work should claim it on their main employer
- Emergency services officers with second jobs should choose the higher-paying role

If you don't claim the tax-free threshold, you'll be taxed from the first dollar but receive a refund at tax time if your total income is below $18,200.

## Foreign Residents and Working Holiday Makers

### Non-Resident Tax Rates

Workers who don't satisfy the residency test cannot claim the tax-free threshold. The ATO generally classifies a worker as a non-resident if they've lived in Australia for less than 6 months, although visa status doesn't automatically determine residency.

Non-resident tax rates 2025-26:

| Income Range | Tax Rate |
| --- | --- |
| $0 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| Over $190,000 | 45% |

### Working Holiday Maker Tax (Backpacker Tax)

From 1 January 2017, special rates apply to working holiday makers on 417 or 462 visas. This became known as the "Backpacker Tax" and commonly affects workers in:

- Rural healthcare (nurses, paramedics)
- Agricultural work
- Hospitality and tourism
- Some mining operations

Working Holiday Maker rates 2025-26:

| Income Range | Tax Rate |
| --- | --- |
| $0 - $45,000 | 15% |
| $45,001 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| Over $190,000 | 45% |

## Low Income Tax Offset (LITO)

The Low Income Tax Offset is a tax rebate for individuals on low incomes, providing up to $700 in tax relief.

How LITO works (2025-26):

- **Full offset:** $700 for incomes up to $37,500
- **Reduced offset:** Reduces by 5¢ for every $1 over $37,500
- **Cuts out:** At $66,667 (no offset)

For roster workers:

You don't need to apply for LITO - it's automatically calculated when you lodge your tax return. This benefits part-time nurses, casual emergency services workers, and those on lower award rates.

## Low and Middle Income Tax Offset (LMITO) - Ended

The Low and Middle Income Tax Offset (LMITO) ended on 30 June 2024. It is no longer available for the 2024-25 or 2025-26 tax years. This offset previously provided up to $1,500 in tax relief for middle-income earners but was not extended beyond the 2023-24 financial year.

## Medicare Levy

The Medicare Levy is an additional 2% tax that funds Australia's public health insurance scheme. It ensures all Australians have access to medical and hospital services.

Who pays it:

- Australian residents for tax purposes pay 2% of taxable income
- Low-income earners may be exempt or pay a reduced rate
- Non-residents generally don't pay Medicare Levy

Medicare Levy exemptions:

- Blind pensioners
- Some foreign residents
- Low-income families (income thresholds apply)

### Medicare Levy Surcharge (MLS)

High-income earners without private health insurance may pay an additional surcharge:

| Income (Single) | Income (Family) | Surcharge Rate |
| --- | --- | --- |
| Up to $97,000 | Up to $194,000 | 0% |
| $97,001 - $113,000 | $194,001 - $226,000 | 1.0% |
| $113,001 - $151,000 | $226,001 - $302,000 | 1.25% |
| Over $151,000 | Over $302,000 | 1.5% |

For high-earning roster workers (FIFO, senior nurses, pilots):

Consider private health insurance to avoid this surcharge. The cost of private cover is often less than the MLS on high incomes.

## Superannuation

Australian employers must pay superannuation on top of your ordinary time earnings.

Current rate (2025-26):

- **12%** of ordinary time earnings

The superannuation guarantee rate increased from 11.5% to 12% on 1 July 2025, marking the final step in the legislated increase schedule.

Maximum super contribution base (2025-26):

- $62,500 per quarter ($250,000 per year)
- Employers don't pay super on earnings above this limit
- Maximum SG contribution: $7,500 per quarter ($30,000 per year)

What counts for super:

- Base salary
- Shift penalties and loadings (in most awards)
- Overtime (depending on award)

What doesn't count:

- Some FIFO allowances (check your enterprise agreement)
- Certain lump sum payments

For roster workers with multiple jobs:

Each employer must pay super separately, but it all goes into your chosen fund. Make sure to consolidate accounts to avoid multiple fee charges.

## Tax Deductions for Roster Workers

Roster workers across all industries can claim legitimate work-related expenses. You must have spent the money yourself, it must be directly related to earning your income, and you need records to prove it.

### Healthcare Workers (Nurses, Doctors, Paramedics)

#### Uniform and clothing:

- Scrubs, medical uniforms (if not provided by employer)
- Non-slip shoes, protective footwear
- Laundry costs for uniforms ($1 per load, no receipts needed under $150)

#### Equipment and tools:

- Stethoscopes, medical scissors, penlights
- Nursing bags and equipment
- Protective equipment (glasses, face shields)

#### Education and registration:

- AHPRA registration and renewal fees
- Continuing professional development (CPD) courses
- Medical journals and reference materials
- Conference attendance (work-related)

#### Vehicle expenses:

- Travel between multiple work sites (hospital to aged care)
- Home visits (community nurses, paramedics)
- Cannot claim home to work travel

#### Other deductions:

- Professional indemnity insurance
- Union fees (ANF, HSU, etc.)
- Phone and internet (work-related portion)
- Home office (if employer requires admin work at home)

### Emergency Services (Police, Fire, Ambulance)

#### Uniform and protective gear:

- Boots, safety shoes (if not provided)
- Protective clothing and equipment
- Uniform dry cleaning and maintenance

#### Fitness expenses:

- Gym memberships (if employer requires fitness standards)
- Physical fitness tests required by employer
- Not deductible if for general health

#### Training and certification:

- Professional development courses
- Firearms licensing and training (police)
- Rescue certifications (fire, SES)
- First aid course renewals

#### Vehicle expenses:

- Travel to court (police)
- Travel between stations
- Cannot claim home to work

#### Other deductions:

- Union fees
- Professional memberships
- Sunscreen, sunglasses (outdoor work)

### Mining & FIFO Workers

#### Protective clothing and equipment:

- Safety boots, high-visibility clothing
- Hard hats, safety glasses (if purchased yourself)
- Sunscreen and sun protection
- Laundry expenses for work clothes

#### Tools and equipment:

- Tools required for your role (if not provided)
- Tool insurance
- Tool bags and storage

#### Training and tickets:

- White Card renewal
- Equipment licenses and certifications
- Professional development courses
- Not deductible: Getting your initial tickets

#### Vehicle expenses:

- Travel between sites (not home to airport)
- DIDO: Travel from home to site may be deductible
- Keep logbook for work-related travel

#### Other deductions:

- Union fees (CFMEU, AWU, etc.)
- Income protection insurance
- Relocation costs (in some cases)

Cannot claim:

Flights to site (employer-provided), food and accommodation on site

### Aviation Workers (Pilots, Cabin Crew)

#### Uniform expenses:

- Uniform purchases and dry cleaning
- Replacement items (shirts, shoes)
- Grooming requirements (makeup, hair products)

#### Training and licensing:

- License renewals and medical examinations
- Type ratings and endorsements
- Aviation English proficiency tests
- Simulator time (if paid by you)

#### Accommodation and meals:

- Overnight layovers (if not reimbursed by employer)
- Meals during duty (excess meal allowance portion)

#### Other deductions:

- Union fees (pilot associations)
- Log book fees
- Aviation publications and charts
- Sunglasses (prescription aviation sunglasses)

### Manufacturing & Shift Workers

#### Protective clothing:

- Safety boots, protective equipment
- Ear plugs, safety glasses
- Heat-resistant clothing (foundry workers)

#### Tools and equipment:

- Trade tools (if not provided)
- Tool insurance and maintenance

#### Other deductions:

- Union fees
- Income protection insurance
- Vehicle expenses (traveling between sites)

## Special Considerations for Roster Workers

### Working Multiple Jobs

Many roster workers have secondary employment during their rostered days off. This affects your tax:

#### Tax withholding:

- Only claim tax-free threshold on your primary job
- Secondary job is taxed from the first dollar (usually 30%+)
- Pay extra PAYG tax to avoid a bill at tax time

#### Combined income:

- Your marginal tax rate applies to total income from all sources
- Example: $100k FIFO + $20k side business = taxed at 37% marginal rate
- Budget for this higher rate on your second income

#### Super contributions:

- Each employer pays super separately
- Consolidate into one fund to avoid multiple fee charges

### FIFO Living-Out Allowances

Living-out allowances (LOA) paid to FIFO workers are:

- **Taxable income** - included in your total taxable income
- **Super is paid** - employers pay super on LOA (in most cases)
- **Not a reimbursement** - it's part of your salary package

Typical LOA ranges from $20,000 to $40,000 per year, significantly increasing your taxable income and marginal tax rate.

### Shift Penalties Are Taxable

All shift penalties, loadings, and overtime are taxable income:

- Night shift loading: Taxed
- Weekend penalties: Taxed
- Public holiday double time: Taxed
- Overtime: Taxed

These are usually included in your employer's PAYG withholding, but if you receive large lump sums (e.g., overtime at end of roster), ensure sufficient tax is withheld.

### On-Call Allowances

#### Availability payments (not working):

- Usually taxable income
- Small amounts (e.g., $50/night on call)

#### Call-out payments (actually working):

- Fully taxable
- Often paid at overtime rates
- Check your award for rates

### Claiming Car Expenses

Roster workers often travel between multiple worksites. Two methods to claim:

#### Logbook method (higher claim):

- Keep logbook for 12 weeks
- Calculate work-related percentage
- Claim that percentage of all car costs
- Best for high work usage

#### Cents per kilometre (simpler):

- Claim 88 cents per km (2025-26)
- Maximum 5,000 km per year ($4,400)
- Don't need a logbook
- Best for low to moderate work travel

Cannot claim:

- Normal home to work travel
- FIFO: Home to airport (covered by employer)

### Tax Residency for FIFO Workers

Your tax residency is determined by where you normally live, not where you work:

#### Perth resident working Pilbara:

- Australian resident for tax purposes
- Claim full tax-free threshold
- Standard tax rates apply

#### Interstate FIFO worker:

- Still Australian resident (if living in Australia)
- No difference in tax treatment

#### Overseas resident working Australian FIFO:

- Non-resident tax rates apply
- No tax-free threshold
- Higher tax rates from first dollar

### Working in Different States

Some roster workers work across multiple states (e.g., QLD nurse working NSW contract). Your tax is based on:

- Your state of residence (not work location)
- Total income from all states combined
- One tax return covering all income

#### State-specific considerations:

- Payroll tax (employer's responsibility)
- WorkCover rates vary by state
- Award rates may differ

## Tax Return Tips for Roster Workers

### 1. Keep good records

- Receipts for all deductions
- Bank statements for work-related expenses
- Logbook for car expenses
- Payslips showing PAYG tax withheld

### 2. Don't over-claim

- ATO data-matches income and deductions
- Roster workers are often audited (high deductions)
- Only claim legitimate work expenses

### 3. Consider a tax agent

- Roster workers often have complex returns
- Multiple income sources
- Higher value deductions
- Agent fees are tax-deductible

### 4. Lodge on time

- 31 October if lodging yourself
- May extension if using registered tax agent
- Late lodgement penalties apply

### 5. Check your PAYG withholding

- Review payslips regularly
- Ensure enough tax being withheld
- Adjust via withholding variation if needed

## Common Tax Mistakes

### 1. Claiming ineligible expenses

- ❌ Gym memberships (unless employer-mandated)
- ❌ Regular clothes (even if "uniform-like")
- ❌ Meals at work (unless traveling overnight)
- ❌ Childcare costs

### 2. Not declaring all income

- Cash-in-hand work
- Overseas income
- Investment income
- Side business income

### 3. Claiming tax-free threshold on multiple jobs

- Results in under-withholding
- Tax bill at year-end
- Possible penalties and interest

### 4. Incorrect car expense calculations

- Can't claim home to regular workplace
- Must keep accurate records
- Cents per km limited to 5,000 km

### 5. Missing deductions

- Union fees
- Income protection insurance
- Professional registrations
- Work-related phone costs

## Need More Information?

- **ATO website:** ato.gov.au
- **Tax help:** 13 28 61
- **Registered tax agents:** Find at tpb.gov.au
- **myGov:** Access your tax information at my.gov.au

## Disclaimer

This information is general in nature and should not be considered personal financial or tax advice. Tax laws change regularly. Always consult a registered tax agent or the Australian Taxation Office for advice specific to your situation.

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