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Edited version of your written advice
Authorisation Number: 1012712738011
Ruling
Subject: Meals
Question
Are you entitled to a deduction for the cost of food which is deducted from your pay by your employer?
Answer
No.
This ruling applies for the following period/s:
Year ending 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
You work on board a boat for more than 100 days.
Your employer provided food and deducted an amount per day from your pay for the food.
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.
The cost of meals is normally private or domestic in nature. However, there are two situations where meal expenses are deductible. That is, 1. where a taxpayer is travelling away from home overnight in connection with an income producing activity or 2. where a taxpayer is paid an allowance in connection with overtime worked. However, a deduction is not allowable for meals eaten during the normal working day.
In your case, while we accept that you were on the boat, it is considered that the boat was your normal place of work and your home for the period. This means that you were not travelling for work. Therefore, your meal expenses were not associated with any work related travel. Furthermore, you were not paid an allowance in connection with overtime worked. As such, your meals are considered a private expense and no deduction is allowable.
Therefore, you are not entitled to claim a deduction for meal expenses as they are considered to be a private expense.