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Edited version of your written advice
Authorisation Number: 1012700794049
Ruling
Subject: Meals
Question
Are you entitled to a deduction for meals?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You have been assigned to work for six months at Location A.
Your employer provides accommodation and one meal per day.
The cost of food at Location A is much more than where you usually live.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 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.
Meal expenses are normally private or domestic in character. However, where a taxpayer is travelling away from home overnight in connection with an income producing activity, meal expenses may be deductible.
In order to consider the deductibility of meal expenses the deductibility of travel expenses must be firstly considered.
A distinction is made between travel to work and travel on work. It is only if the duties of the job require a taxpayer to travel in the course of undertaking their work duties that the taxpayer's expenses can be deducted (Taylor v Provan 1975 AC 194).
A deduction is generally not allowable for the cost of travel by an employee between home and their normal workplace as it is considered to be a private expense. The cost of this travel is incurred to put you in a position to perform your duties of employment, rather than in the performance of those duties. (Taxation Ruling TR 95/34 Income tax: employees carrying out itinerant work - deductions, allowances and reimbursements for transport expenses).
Your normal workplace is at Location A. While we accept that the cost of food may be more than you would pay at your normal location, you are considered to be travelling to work rather than on work. As you are travelling to work the 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.