Private ruling: Deduction for meal and accommodation expenses
Published: October 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for meals and accommodation expenses? | 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. Accommodation and meal expenses are ordinarily not deductible as they are private and domestic in nature. Where you are living away from home for work purposes, you move and takes up temporary residence away from your usual place of residence so as to be able to carry out employment duties for a time at the new (but temporary) workplace. In this type of situation, the accommodation and meal expenses incurred while the person is living away from their usual home do not cease to be private and domestic in nature. That is, they are considered to retain their character as living expenses rather than becoming work related expenses. In your case, you are working and living in XXX which is away from your home in XX. You take up temporary residence near your work location so that you will be in a position to earn your income. Accordingly, your meal and accommodation expenses are considered to be of a private or domestic nature. The expenses do not have the character of an outgoing incurred in gaining assessable income, therefore, are not deductible.

Relevant facts: You live in XX and work in XXX. Due to the long term contract your employer has you have been working in XXX for more than one year. | You incur costs for meals and accommodation when working in XXX. When you are not working you return to your home in XX. | Your employer has contracts all over the state and expects that you work at any worksite where you are needed. Your employer does not supply meals or accommodation or pay you a living-away-from-home allowance.