ATO Interpretative Decision
ATO ID 2001/89
Income Tax
Deductions and expenses: Contributions to meals (Shearing Industry)FOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Subject:
Whether contributions by a shearing industry employee (who is paid at the 'not found' rate of pay), for the cost of meals provided by employer are an allowable deduction.
Decision
The amount paid by the taxpayer, as a contribution to the cost of meals provided by the employer in circumstances where the taxpayer is travelling away from home, is allowable as a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). The substantiation provisions must also be satisfied (Division 900 ITAA 1997).
Facts
The taxpayer is a shearing industry employee and is engaged as part of a shearing team. The employer provides the taxpayer with accommodation and meals when the taxpayer is travelling away from home. The taxpayer is paid at the 'not found' rate as set out in an industrial agreement and is required to make a contribution at a prescribed rate towards the cost of meals provided.
Reasons For Decision
The difference between the 'found' and 'not found' rates of pay, as set out in the industrial agreement, does not represent the payment of an allowance for income tax purposes. The taxpayer must satisfy the substantiation requirements in Division 900 (ITAA 1997).
The amount paid by the taxpayer, as a contribution to the cost of meals provided by the employer in circumstances where the taxpayer is travelling away from home whilst performing work duties, is allowable as a deduction under section 8-1 of the Income Tax Assessment Act 1997.
Written evidence of the amount paid is required, unless the total amount of work expenses (excluding meal allowance or travel allowance expenses) is $300 or less.
Date of decision: 16 September 1997
Legislative References:
Income Tax Assessment Act 1997
section 8-1
section 900-15
Keywords
Domestic travel expenses
Employee allowances
Meal and food allowances
Travel allowances
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 16 September 1997 | Original statement |
| 2 September 2011 | Archived |