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Edited version of your private ruling
Authorisation Number: 1012449295338
Ruling
Subject: Meal expenses
Question
Are you entitled to claim the amount you actually incurred without substantiation, where you incur meal expenses of less than the reasonable amount when you travel away from home overnight on work?
Answer
Yes
This ruling applies for the following period
Year ending 30 June 2013
The scheme commenced on
1 July 2012
Relevant facts
You are a truck driver and as you sleep away from home, you receive a travel allowance for each night you are away, for meals.
You spend on average $xx per day for meals.
The reasonable allowance amounts for the areas you travel to, is $xx.xx or $xx.xx if you travel to a capital city.
You find it difficult to keep or obtain receipts for this expenditure.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Income Tax Assessment Act 1997 Division 900
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for losses and outgoings incurred in gaining assessable income except to the extent they are of a capital, private or domestic nature.
A deduction is allowable for work-related travel expenses incurred by an employee truck driver who is required to sleep away from home. These expenses could include the costs of accommodation, fares, meals or incidentals (Taxation Ruling TR 95/18).
Division 900 of the ITAA 1997 requires an employee who incurs a work expense to substantiate the expense by keeping written evidence unless they receive a travel allowance, in which case they may claim a deduction without obtaining written evidence where the amount of the expenses claimed is less than the reasonable allowance amount.
Furthermore, the amount of a bona fide travel allowance must be an amount that could reasonably be expected to cover meals or expenses incidental to the travel. What is considered to be a bona fide travel allowance depends on the facts of each case.
In your case, you received a travel allowance from your employer for each night you are required to sleep away from home. It is accepted that the allowance is a bona fide travel allowance. The travel allowance you received must be included as assessable income in your income tax return if you wish to claim a deduction for your travel expenses.
You have stated that on average you spend $xx on meals per day. Taxation Ruling TR 2004/6 explains that an expense must be actually incurred as required by section 8-1 of the ITAA 1997, before a claim can be made. You cannot automatically claim a deduction just because you receive an allowance.
Therefore, as your meal expenses are less than the reasonable amount, you are entitled to claim a deduction without obtaining substantiation, for expenditure you actually incur on meals.