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Edited version of your private ruling
Authorisation Number: 1012518777665
Ruling
Subject: Travel expenses
Question
Are you entitled to a deduction for meals?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2013
The scheme commenced on
1 July 2012
Relevant facts
You are employed in a particular field.
You travel to other work locations within your employers group from your home base in City A.
You usually stay at each of these locations for a number of weeks at a time to carryout regular work.
Your employer provides accommodation while you are working at these various locations but does not provide meals.
Your employer does not provide a travel allowance for meals or accommodation, you provide your own meals while at these locations.
Relevant legislative provisions
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, or relate to the earning of exempt income.
The cost of meals is generally considered to be a private 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 carry out regular work at other workplaces for a number of weeks at a time. Each of these workplaces is considered to be your regular place of employment and during these periods you are living in these locations and you travelled because your work had been moved to those locations for these periods.
In FC of T v. Toms 89 ATC 4373; (1989) 20 ATR 466 (Toms case) the Federal Court disallowed a forest worker's deduction for the cost of maintaining a caravan and other living expenses. The taxpayer incurred the expenses in providing temporary accommodation at the base camp because the taxpayer had chosen to reside at a place far from the worksite. These expenses were dictated not by work but by private considerations.
Your accommodation at your various workplaces is considered to be your second residence for the periods you are working. As such, you are not considered to be away from home overnight. As in Toms case, expenses you incur for meals are not work related expenses and are considered to be private. Accordingly, a deduction for these expenses is not allowable.