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Edited version of private ruling
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Ruling
Subject: meal expenses
Are you entitled to a deduction for meal expenses?
No.
This ruling applies for the following period
Year ended 30 June 2010
Year ending 30 June 2011
The scheme commenced on
1 July 2009
Relevant facts
You are a consultant and visit clients some distance from your office.
You cannot bring your lunch into your client's premises and therefore eat at the local takeaway places.
You do not receive an allowance as most clients are only 15 or 20 minutes away from your office.
You choose not to head back to your office for lunch as your lunch period would be used in walking to and from the office.
Relevant legislative provision
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.
The cost of meals is generally considered to be a private or domestic expense and not deductible. An exception to this is where you are undertaking work-related travel, for instance you attend a work-related activity in another town and are required to stay overnight. A deduction is allowable for the cost of meals if you are required to sleep away from home, as the meal expense would then form part of the travel expense.
In your case, you choose to eat at takeaway places and not walk back to your office for lunch. This is a personal choice. You do not incur the meal expenses in the course of carrying on your business and your employment duties do not require you to be away from home overnight.
Consequently, the meals are a private expense and no deduction is allowed under section 8-1 of the ITAA 1997.