Private ruling: Meal expenses
Date of advice: 26 September 2016
Published: November 2016
Ruling period: Year ended 30 June 2016
Date scheme commenced: 1 July 2015

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

Relevant facts and circumstances: Your employment involves spending considerable time on ships. Accommodation is the only benefit provided by the employer. You received a travel allowance.

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. The payment of an allowance does not automatically entitle the taxpayer to a deduction. The expense must be incurred in the course of producing assessable income ( Amalgamated Zinc (De Bavay's) Ltd v. FCT (1935) 54 CLR 295; (1935) 3 ATD 288; [1936] ALR 67). The cost of meals is generally considered to be a private or domestic expense and not deductible. An exception to this is where you are undertaking work-related travel, for instance you attend a work-related seminar in another town and are required to stay overnight. A deduction is allowable for the cost of meals if you are required to sleep away from home, as the meal expense would then form, part of the travel expense. In considering the deductibility of travel expenses 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) In your case, while we accept that your specific circumstances, it is considered that the ship was your normal place of work and your home for the period. This means that you were not travelling for work. Therefore, your meal and incidental expenses were not associated with any work related travel. Your expenses are considered to be private in nature and no deduction is allowable.