Truck driver's new approach for meal expenses
Employee truck (and other transport) drivers who have been required to sleep away from home overnight due to work have new rules relating to travel expense claims. These new rules take effect from 1 July 2017, meaning the drivers affected need to make adjustments as soon as possible.
Claiming meal expenses
The cost of meals or accommodation is generally a non-deductible private expense unless the occasion of the outgoing gives the expenditure the essential character of a working expense. A typical example of this is expenditure incurred while away from home.
For a truck driver to claim a deduction for meals, there must have been:
- a requirement to sleep away from home overnight, or during a designated rest period, for work
- a travel allowance received by the driver which is included in assessable income, and
- a record of the amounts spent on meals for which the driver was not reimbursed.
However, an employee truck driver is not required to keep a tax receipt for every meal expense if the driver was:
- paid a travel allowance, and
- claiming less than the amount the ATO has published as the “reasonable amount”.
The ATO has recently re-released TD 2017/19. This determination runs through what the Commissioner of Taxation considers a reasonable amount in respect of claims for meal expenses when travelling away from home overnight.
“Where a travel allowance is received and the claim does not exceed the ATO-published ‘reasonable amount’, the truck driver does not need to keep receipts for every meal.”
Change for the 2017/18 income year
In the updated determination, the Commissioner has changed the method of calculating of reasonable amounts for employee truck drivers. Instead of the reasonable amount based on a daily rate, it is now based on the type of meal that the driver would have eaten.
The ATO accepts that a truck driver may eat their meals at unconventional times. However, the deduction allowable is based on the type of meal that the driver consumed in the course of work travel. This is of particular importance on days which travel commences and ends, as well as situations where certain meals are not taken (ie drivers sleeping during the day).
Reasonable amounts for employee truck drivers
| From 1 July 2017, the maximum deductible employee truck driver’s meal (food and drink) amount without tax receipts is: | ||
| Breakfast | Lunch | Dinner |
| $24.25 | $27.65 | $47.70 |
“From 1 July 2017, the method of calculating reasonable amounts for employee truck-driver meal expenses changed — instead of a fixed daily rate, deductions are based on the type of meal consumed.”
Practical applications
Employee truck drivers will have access to information that can verify the times that they were driving the truck for work-related purposes, including overnight trips. Not only can a work diary be maintained by employee truck drivers, the information is already recorded for fatigue management purposes. These documents can determine when meal breaks were taken and can be used to tally up the appropriate number of claims.
In accordance with the substantiation requirements of ITAA 1997 Div 900, formal tax receipts are not necessary for amounts claimed below the reasonable amount. However, your client should still be able to demonstrate the basis for their claims.
Businesses employing truck drivers
Businesses in the freight industry (or other industry that employs overnight drivers) may use the old daily rate in calculating the travel allowance on overnight trips.
An opportunity may exist for businsesses in these industries to restructure employment arrangements with their drivers. This could reduce PAYG withholding obligations based on a more accurate split between wages and allowances.
Please contact us for more information, if you have any queries in regards to the changes to overnight meal deductions for employee truck drivers.
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Meal expense deductions for truck drivers changed in 2017: from a single daily rate to meal-by-meal rates.
This means deductions are now calculated based on what meal was eaten (breakfast, lunch, dinner), not simply a flat daily sum.
If a claim stays within “reasonable amounts,” no receipts are needed.
This simplification reduces the record-keeping burden for drivers claiming meal expenses, provided the conditions are met and allowance is genuine.
Overnight travel or rest periods away from home are fundamental for meal-deduction eligibility.
Regular commuting or meals at home don’t qualify; the deduction is tied to genuine work-related travel requiring sleep/rest away from home.
Driven by our values
Effortless and Seamless
On-Boarding Process
Intuitive and Knowledgeable
Direct Expert
Access
Useful and Articulate
Financial
Reporting
Forward
Thinking
Compliance Solutions
Streamlined
Tech
Integrated and Automated
Frequently Asked Questions
When can a truck driver claim meal expenses as a deduction?
A deduction is allowed if the driver was required to sleep away from home overnight (or take a designated rest period away from home), received a travelling allowance, and incurred meal costs not reimbursed by the employer.
Do truck drivers need to keep receipts for every meal expense claimed?
Not always. If the amount claimed for a meal is equal to or below the ATO’s “reasonable amount” for that meal type, then detailed receipts are not required.
What are the “reasonable amounts” for meals for truck drivers (as at 2017/18)?
For the 2017/18 income year the reasonable amounts (without needing receipts) are: Breakfast — A$24.25, Lunch — A$27.65, Dinner — A$47.70.
Can meal allowances be claimed if a driver is not away overnight?
No — the deduction applies only when the driver is required to rest or sleep away from home due to the job. Ordinary daily meals taken while at home are generally considered private and non-deductible.
What documentation should a truck driver keep to support a claim?
Though receipts may not be needed under the “reasonable amount” rule, the driver should keep a work diary or fatigue/rest log (which many transport employers already require), showing when the travel or overnight stay occurred, and that a travelling allowance was received.
Can truck drivers claim meal expenses as a tax deduction?
Yes, but only in certain situations. Meal expenses are usually a private (non-deductible) cost unless they are incurred due to work travel away from home overnight.
North Advisory’s Reviews 
On 
Flo Mitchell
4 weeks ago
Changed to this company in 2019 from former accountant and love their approach of organizing everything for me face to face with Xero set up plus being able to call as much as I need for set annual fee. They also picked up on something that was not done correctly by my former accountant and saved me $4k for this.
Timothy Cummins
A month ago
They the truly the best, Martin and Judy are so experienced, knowledgeable & professonal, also quite like speaking with Rose : ) all people are so lovely!
Michael Iera
2 months ago
Positive, Responsiveness, Quality, Professionalism, Value
Michael Iera
2 months ago
Excellent company in regards to service and professionalism. Very experienced in dealing with complex matters. Highly recommended.
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia