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Ruling
Subject: Expenses - overtime meals
Question
Are you entitled to claim a deduction for overtime meal expenses where you are not paid an overtime meal allowance by your employer?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
Due to the nature of your employment role, you were regularly required to work unplanned overtime.
During these periods of overtime you purchased your own meals and were not reimbursed by your employer.
Also, your employer did not pay you an overtime meal allowance.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1.
Income Tax Assessment Act 1997 Subsection 900-30(4)
Income Tax Assessment Act 1997 Subsection 900-30(5).
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. However, no deductions are allowable for expenses which are of a capital, private or domestic nature.
The cost of meals is generally considered to be a private expense and not deductible under section 8-1 of the ITAA 1997.
However, subsection 900-30(4) of the ITAA 1997 states that meal allowance expenses are work expenses if they are incurred for food or drink and are covered by a meal allowance. A meal allowance is an amount that the employer pays to an employee to enable the employee to purchase food or drink (subsection 900-30(5) of the ITAA 1997).
An overtime meal allowance is paid to cover the cost of food or drink in connection with overtime worked and must be paid or be payable under a law of the Commonwealth or of a State or Territory, or under an award, order, determination or industrial agreement in force under such a law.
In your case, your employer does not provide you with a meal allowance under an industrial instrument for working overtime. Therefore, you are not entitled to claim any meal expenses incurred for working overtime. The expenditure for providing your own meals is considered to be private in nature.