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Edited version of your written advice
Authorisation Number: 1051244473833
Date of advice: 11 August 2017
Ruling
Subject: Work related expenses
Question
Can you claim for the actual meal expenses incurred above the allowance provided by the employer?
Answer
Yes
TR 95/19 paragraph 159 explains that a deduction is allowable for work related travel expenses incurred by an airline employee undertaking work related travel. These expenses include accommodation, fares meals and incidentals.
Paragraph 164 of Taxation Ruling TR 95/19 states 'If the allowance is received and the amount of the claim for expenses incurred is no more than the reasonable amount, substantiation is not required. The commissioner of taxation publishes annually a Taxation Ruling that sets out the amount of reasonable expenses covered by the travel allowance.’
Paragraph 165 further states 'If the deduction claimed is more than the reasonable amount, the whole expense must be substantiated not just the amount over the reasonable amount.’
Tax Determination 2016/13, outlines what are the reasonable travel and overtime meal allowances for the 2017 income tax year.
Based on paragraph 164 it is clear that the meal allowance paid by the employer in no way limits the amount claimable where the actual expense incurred exceeds the allowance provided by the employer.
Furthermore paragraph 164 indicates where the actual expense is less than or equal to the reasonable meal allowance published each year, substantiation may not be required in the circumstance indicated to make a valid claim. The only main limiting factor of the claim will be the actual amount spent not the allowance provided by the employer.
This ruling applies for the following periods:
Year ended 30 June 2017
Year ended 30 June 2018
Year ended 30 June 2019
The scheme commences on:
1 July 2016
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The facts are as follows:
● You are a flight attendant for international flights.
● You receive a meal allowance from the employer for meals while working.
● Your meal allowance is specified for each meal and international location.
Actual meal expenses incurred often exceed the specified meal allowance (breakfast, lunch or dinner) provided by the employer as part of your salary and wages.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1.
ATO view documents
Taxation Ruling 95/35
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