Issue
Is a casual employee allowed a deduction for meal and accommodation expenses incurred while carrying out relief work duties away from home under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The casual employee is not allowed a deduction for meal and accommodation expenses incurred while carrying out relief work duties away from home under section 8-1 of the ITAA 1997 as they are private in nature.
Facts
The taxpayer is a casual employee who performs relief duties for periods of up to 6 weeks at a time at various places before returning home.
The taxpayer does not receive reimbursement or an allowance from their employer for meal and accommodation expenses incurred whilst away from home.
Reasons for Decision
Section 8-1 of the ITAA 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.
Various court decisions have concluded that, generally, accommodation and food expenses incurred while away from home are essentially 'living expenses' of a private or domestic nature and therefore not deductible ( FC of T v. Cooper 91 ATC 4396; (1991) 21 ATR 1616; FC of T v. Toms 89 ATC 4373; (1989) 20 ATR 466).
The place where the taxpayer stays whilst away from home, is considered their usual place of residence for that period. Therefore, the accommodation and meal expenses incurred during that period are private expenditure, and are not deductible under section 8-1 of the ITAA 1997.