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Edited version of your private ruling

Authorisation Number: 1012568329479

Ruling

Subject: work related expenses

Question

Are you entitled to a deduction for expenditure on food?

Answer:

No

This ruling applies for the following period

Year ended 30 June 2013

The scheme commenced on

1 July 2012

Relevant facts

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) 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.

Expenditure on the daily necessities of life (e.g., food and drink) is generally a private expense and is not incurred in gaining or producing assessable income.

The issue of the deductibility of meals was considered by the Full Federal Court in Federal Commissioner of Taxation v. Cooper (1991) 21 ATR 1616; 91 ATC 4396 where Hill J stated (ATR at page 1638; ATC at page 4415):

However, the occasion of the outgoing may operate to give to expenditure on food and drink the essential character of a working expense in cases such as those illustrated of work-related entertainment or expenditure incurred while away from home.

The reference to 'expenditure incurred while away from home' is a reference to the situation where a taxpayer must travel away from home for the purposes of their employment. Where a taxpayer is required to travel for work purposes the cost of meals may be deductible.

The taxpayer must however be travelling for work purposes. For example, an office worker attending an interstate conference or an 'on road' salesman.

In relation to your food and drink expenses, because you cannot be considered to be travelling for work as you continue to perform your employment duties at your ordinary place of work and the fact that your food and drink expenses were incurred to enable you to work in at XX your food and drink expenses are seen to be of a private and domestic nature. The fact that your religion necessitates you buy special food does not change the character of the expense. They are not incurred during in the actual performance of your work, that is, during the production of assessable income, and as such are not deductible under section 8-1 of the ITAA 1997.

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