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Edited version of private advice
Authorisation Number: 1051986705685
Date of advice: 26 May 2022
Ruling
Subject: Work-related expenses
Question
Can food and drink expenses incurred in relation to your temporary assignment to a remote community be deducted as travel expenses?
Answer
Yes. In accordance with Taxation Ruling 2021/4 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses travel allowances, and living-away-from-home allowances you are considered to be travelling on work given the temporary and short nature of your assignment. As such your food and drink expenses take on an employment related character and are found in your income-producing activities. The expenses are therefore deductible under section 8-1 of the Income Tax Assessment Act 1997. It is important that you have the necessary evidence to substantiate your claim. For information on the records you need to keep for substantiation go to www.ato.gov.au and enter quick code QC 31973 into the search bar.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are employed by a government agency.
Your regular place of work is at Location A.
You were temporarily assigned to work at a Location B within a remote community.
Location B is not your regular place of work or place of residence.
Your regular place of work did not change, as you returned to Location A after the temporary assignment.
You were initially away for 3 weeks but were extended two-weeks at a time to be away for approximately 8 weeks in total.
You were housed in government housing at Location B at no cost to you.
Food and drink purchase options at Location B were not reliable as the only store was mainly servicing the local community and opening times fluctuated dramatically.
You purchased food and drinks prior to departing to take with you to the accommodation.
After each extension you would have a friend or colleague purchase more food and drink supplies and have them flown to Location B.
You were paid a travel allowance after completing the assignment based on meal rates stipulated by the government agency.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1