Private ruling: Work-related expenses - meals
Published: September 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for meal expenses? | A1: No

Relevant facts and circumstances: You are an employee. You undertake your work duties in remote locations. You work on a 10 day on, 4 day off roster. You return to your normal place of residence after each work period. You reside in share accommodation on the worksite during your work periods. There are no food facilities on site. You are paid a meal allowance as part of your salary package. You incur expenses in respect of meals during your work periods.


Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 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. Various court decisions have concluded that, generally, accommodation and food expenses incurred while away from home are essentially 'living expenses' of a private or domestic nature and therefore not deductible ( FC of T v. Cooper 91 ATC 4396; (1991) 21 ATR 1616; FC of T v. Toms 89 ATC 4373; (1989) 20 ATR 466). The place where the taxpayer stays whilst away from home is considered their usual place of residence for that period. Therefore, the accommodation and meal expenses incurred during that period are private expenditure, and are not deductible under section 8-1 of the ITAA 1997.

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