| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012700915802
Ruling
Subject: Meals and entertainment
Question
Are you entitled to a deduction for meal and entertainment expenses?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts
You are a casual employee who works on overnight shifts.
You are required to provide your own meals during a shift and do not receive a meal allowance.
You sometimes take your clients on outings. It is not mandatory to do this. However, when you take a client out, the client pays for their own entertainment and you have to pay for your own entertainment.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the 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.
Meal expenses
Expenditure on the daily necessities of life, for example food and drink, are generally not deductible, unless the outgoing gives the expenditure the essential character of a working expense, as it is not incurred in gaining or producing assessable income and is also private or domestic in nature. However, there are two situations where meal expenses may be deductible. These are where a taxpayer is away from home overnight in connection with an income producing activity or where a taxpayer is paid an allowance in connection with overtime worked.
In your case, when you undertake your shifts you are not considered to be away from home overnight in connection with your income producing activity. Rather, you are merely performing your normal duties and may be permitted to sleep when your assistance is not required. Therefore, as you are not sleeping away from home in connection with your income producing activity or receiving an allowance in connection with overtime you are not entitled to a deduction for meals.
Cost of your own entertainment
Whilst we accept that you may take clients on outings the costs you incur are for you to attend. It is not a requirement of your duties that you take the clients to the particular outings and any expenses you incur are private in nature and not deductible.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
