Private ruling: Meals
Published: October 2014
Ruling period: Year ending 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for the cost of food which is deducted from your pay by your employer? | A1: No.

Relevant facts and circumstances: You work on board a boat for more than 100 days. Your employer provided food and deducted an amount per day from your pay for the food.

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. The cost of meals is normally private or domestic in nature. However, there are two situations where meal expenses are deductible. That is, 1. where a taxpayer is travelling away from home overnight in connection with an income producing activity or 2. where a taxpayer is paid an allowance in connection with overtime worked. However, a deduction is not allowable for meals eaten during the normal working day. In your case, while we accept that you were on the boat, it is considered that the boat was your normal place of work and your home for the period. This means that you were not travelling for work. Therefore, your meal expenses were not associated with any work related travel. Furthermore, you were not paid an allowance in connection with overtime worked. As such, your meals are considered a private expense and no deduction is allowable. Therefore, you are not entitled to claim a deduction for meal expenses as they are considered to be a private expense.