Meals when travelling not work-related expenses
Recent media releases from the Australian Taxation Office (ATO) have stated that they intend to audit more people this coming year over work-related expenses.
A taxpayer has been denied income tax deductions for expenses incurred relating to additional meals spent while working different jobs. The taxpayer was employed as an employee and worked in the same location/city as their main residence.
The taxpayer sourced additional work through an agency, and commenced working in other locations. The distance between these other locations is unclear, but it can be assumed they were in different towns/cities that were a substantial distance away.
There was no connection between the employment with the original employer and the additional work completed through the agency in the other locations. However, the taxpayer incurred additional expenses for meals when they travelled to these other locations to complete the additional work.
The taxpayer asked the Commissioner whether they were entitled to claim a tax deduction for these meals.
Briefly, the Commissioner answered no.
The deduction was not allowable as it was incurred in order to put the taxpayer in a position to be able to earn income but not incurred in the actual course of gaining or producing that income. Also, the expenses were considered to be private in nature as they were incurred due to the taxpayer’s choice of where they lived and where they worked.
While the above case may seem quite straight forward, it highlights the ease of which a member of the general public can misinterpret information provided by the ATO. The factsheet for D2 – work related travel expense deductions, does state that meals incurred while away overnight for work are deductible. However, it does not state that these deductions would be relating to travel with the same employment. Having different or multiple jobs is not considered by the Commissioner, and no statement is made in regards to this in the factsheet.
If you are unsure of whether a tax deduction is eligible to be claimed, please do not hesitate to contact us.
If you have any questions on any of the above issues raised, please do not hesitate to contact us.
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
“The Commissioner answered no — the meal costs incurred during such travel were not deductible because they were considered private in nature, not incurred in the actual course of producing assessable income.”
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Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Not all travel meals are deductible — purpose and context matter.
Only meals incurred while staying away from home overnight for the purpose of performing employment duties may qualify; other travel or meals are treated as private.
Travel between jobs or different employers does not guarantee deductibility.
If you travel to a second job separate from your regular employment, meal expenses may be disallowed as they are deemed private rather than in the course of earning income.
Receiving a travel allowance helps — but doesn’t remove all substantiation requirements.
With an allowance, you still must show that the expenses were incurred during valid work-related overnight travel and weren’t reimbursed.
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Frequently Asked Questions
When are meals during travel deductible under Australian tax law?
Meals (and other travel-related expenses) may be deductible if you travel and stay away from your home overnight for the purpose of performing your employment duties — and you incur the expense yourself (not reimbursed).
If I travel to a different location to do another job (while already employed elsewhere), can I claim meals as deductions?
Generally no. According to the case described in the article, claiming meal expenses when you travel to a different employer’s work site did not qualify because the travel was not considered “in the course of” your original employment — thus the costs were treated as private.
What if I receive a travel allowance from my employer — does that make meals deductible automatically?
Not necessarily. Receiving a travel allowance means you may claim deductions for accommodation, meals or incidentals — only if you actually incur those expenses during legitimate overnight work-related travel, and employer hasn’t reimbursed them.
Are meals consumed during normal work hours or regular commuting deductible?
No — meals or snacks during ordinary work hours or daily commuting (home to work and back) are considered private expenses and are not deductible.
What kind of evidence or conditions does the tax office expect for a meal or travel deduction to be valid?
You need to show that: you travelled away from home overnight (not just commuting); your employer required you to work at a location other than your usual workplace; you incurred (and paid for) the expense yourself; and the travel or meal was genuinely work-related. Without that connection, the deduction may be disallowed.
Did the taxpayer get the deduction for the meal expenses?
No. The Australian Taxation Office (ATO) denied the claim because the meal expenses were not incurred in the actual course of earning the income and were considered private in nature.
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