Private ruling: Meals and other living costs
Published: November 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a deduction for meals and other living costs? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Meal expenses are normally private or domestic in character. However, where a taxpayer is travelling away from home overnight in connection with an income producing activity, meal expenses may be deductible. In order to consider the deductibility of meal expenses the deductibility of travel expenses must be firstly considered. A distinction is made between travel to work and travel on work. It is only if the duties of the job require a taxpayer to travel in the course of undertaking their work duties that the taxpayer's expenses can be deducted ( Taylor v Provan 1975 AC 194). A deduction is generally not allowable for the cost of travel by an employee between home and their normal workplace as it is considered to be a private expense. The cost of this travel is incurred to put you in a position to perform your duties of employment, rather than in the performance of those duties. (Taxation Ruling TR 95/34 Income tax: employees carrying out itinerant work - deductions, allowances and reimbursements for transport expenses ). Your normal workplace for the period of the relocation is in City B. You are considered to be travelling to work rather than on work. As you are travelling to work the expenses you incur for meals and other living costs are not work related expenses and are considered to be private. Accordingly, a deduction for these expenses is not allowable.

Relevant facts: Your residential home is in City A. | Your employer has relocated you to City B to work for approximately one year. | You intend flying back to City A approximately every two months. | Your employer pays for your accommodation and the bimonthly flights. | While back in City A, you may work for one of two days.