Edited version of your private ruling

Authorisation Number: 1012436562577

Ruling

Subject: Work related expenses

Question and answer

Are you entitled to a deduction for meal expenses incurred when travelling for work and the travel includes a sleep away from home?

Yes

This ruling applies for the following period

Year ended 30 June 2012

The scheme commenced on

1 July 2011

Relevant facts

You are employed as a long distance driver.

You sleep in your truck for a number of nights.

You receive an overnight allowance for each of the nights you are sleeping in your truck.

You receive an overtime meal allowance shown on your payment summary.

You incur meal expenses while you are away.

You keep a work diary but do not keep records of all of your meal expenses as you do not claim over the reasonable amount thresholds each financial year.

You advised that receipts are difficult to obtain at some of the roadhouses and food stops you purchase your meals from.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Work related expenses generally fall for consideration under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). This section 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.

A work-related travel expense occurs when a taxpayer is required to travel away from his or her normal place of work or sleep away from his or her ordinary place of residency in the course of performing income-earning activities.

Taxation Ruling TR 95/18 Income tax: employee truck drivers-allowances, reimbursements and work-related deductions states that a deduction is allowable for the cost of meals if a truck driver is required to sleep away from home, as the expenses are seen as having sufficient connection with the truck driver's income-earning activities.

An example provided in TR 95/18 at paragraph 159 states:

Kim, a truck driver, is required to drive his truck to a distant country depot and sleeps in the cab of the truck while away from home. He incurs meal expenses while on the road. Kim is considered to be travelling in the course of performing his duties as he is required to sleep away from home. A deduction is allowable for the cost of buying meals while on the road.

If the employee is in receipt of a meal allowance:

· The expenses claimed must have been incurred

· The expenses claimed must satisfy section 8-1 of the ITAA 1997

· If the amount claimed is no more than the reasonable amount, no substantiation is required (the reasonable meal allowance expenses amounts for the 2001-2012 income year are available on our website www.ato.gov.au)

· If the claim is more than the reasonable amount, the whole claim must be supported by written evidence

It is important to note in considering the above factors that only the actual amount incurred on work-related travel expenses (for instance meal expenses) can be claimed as a deduction.

In your case, you are a truck driver who is required to work away for a number of days, sleeping in your truck for a number of nights. You incur meal expenses while on the road in the course of your truck driving duties. The amount you incur is less than the reasonable amount.

Accordingly, your meal expenses that you actually incur while you are travelling and sleeping away from home are deductible under section 8-1 of the ITAA 1997.