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Edited version of your private ruling
Authorisation Number: 1012564024680
Ruling
Subject: Work related expenses - overtime meals and travel
Question 1
Are you entitled to a deduction for meals while working overtime without written evidence to substantiate your claim?
Answer
No
Question 2
Are you entitled to a deduction for meals while working overtime with written evidence to substantiate your claim?
Answer
No
Question 3
Are you entitled to a deduction for meals where you are required to sleep away from home for work without written evidence to substantiate your claim?
Answer
No
Question 3
Are you entitled to a deduction for meals where you are required to sleep away from home for work with written evidence to substantiate your claim?
Answer
Yes
This ruling applies for the following period:
Year ended 30 June 2013
The scheme commenced on:
1 July 2012
Relevant facts and circumstances
You receive a $X weekly allowance that is identified on your payslip as overtime meal allowance. You receive this amount regardless of the number of times you work overtime in any particular week.
You do not receive any additional travel allowance.
Your work requires you to travel, and in instances you are required to stay away from home overnight while working.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) generally allows a deduction for any loss or outgoing to the extent that it is incurred in gaining or producing assessable income. However, you cannot claim a deduction for a loss or outgoing to the extent that it is of a capital, private or domestic nature.
Overtime meals
The types of expenses that are deductible for employee truck drivers are considered in Taxation Ruling TR 95/18. Expenditure on meals consumed by employees throughout the course of a working day is generally considered to be private in nature. However, the cost of meals bought while working overtime may be deductible, if a bona fide overtime meal allowance has been received (Taxation Ruling TR 2004/6).
To be a bona fide overtime meal allowance, the allowance needs to be paid for specific individual instances that you work overtime and the amount of the allowance must enable you to buy food and drink in connection with the overtime worked.
In your case, you receive a weekly amount that is paid regardless of the number of instances you work overtime or are required to travel. We do not consider the allowance to be a bona fide overtime meal allowance. Accordingly, where you work overtime, but are not required to sleep away from home overnight, you are not entitled to a deduction for meal expenses regardless of whether you can substantiate your expenses.
Travel expenses
Where an employee truck driver is required to sleep away from home for work related travel, they will be entitled to a deduction for travel expenses, including meals and incidentals.
If a travel allowance is received, a deduction may be allowed for work related travel expenses without written evidence if the total expenses claimed are considered reasonable.
In your case, you do not receive a travel allowance from your employer. Accordingly, you can only claim a deduction for work related travel expenses such as meals and incidentals where you are required to sleep away from your home and you have written evidence to substantiate your claim.
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