Private ruling: Deduction for cooking expenses
Published: December 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: I July 2012

Ruling: Q1: Are you entitled to claim a deduction for food purchases? | A1: Yes.



Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) states that all losses and outgoings to the extent to which they are incurred in gaining or producing the assessable income, shall be allowable deductions except to the extent to which they are losses or outgoings of a capital, private or domestic nature. Taxation Ruling TR 95/14 addresses employee teachers' allowances, reimbursements and work-related deductions and deals with deductions for work related expenses generally claimed by teachers. Although you were not a teacher, the principles set out in this ruling can still be applied to your circumstances. Paragraph 205 of TR 95/14 states that a deduction is allowable if an employee teacher purchases teaching aids to be used in the course of carrying out the duties of employment and that expenditure is not of a private, domestic or capital nature. The items purchased must have a direct and relevant use in carrying out those duties. Also, paragraph 207 of TR 95/14 states a deduction is allowable for expenditure incurred on items or teaching aids used in the everyday duties of an employee teacher with an example being items used in cooking or sewing classes or science experiments. In your case, you purchased the food items to enhance the children's learning experience; therefore your outgoings are considered incidental and relevant to your work and were incurred in gaining your assessable income as a group leader. Accordingly the expenses that you have not already been reimbursed for are deductible under section 8-1 of the ITAA 1997.

Relevant facts: You were employed as a group leader at a long stay day care centre. | You purchased food items for use at the day care centre to provide the children with activities based on food that would enhance their learning experience. | Your intention was that the children experience different foods, do taste testing and activities experimenting with food. The food was generally consumed but did not replace the meals provided by the centre. | Your employer has reimbursed you for some of your expenses. | Relevant legislative provision: Income Tax Assessment Act 1997 section 8-1