So you have worked your eight hours, plus some overtime, and had some takeaway dinner in the meantime. Is that takeaway dinner deductible for tax purposes?
You can claim meals as a tax deduction if:
- You receive an overtime meal allowance under an industrial law, award or agreement
- The allowance is on your income statement as a separate allowance to be included in your tax return
- The meal relates to overtime (while working after more than your ordinary hours)
The ATO sets an amount you can claim for overtime meal expenses without receipts ($32.50 in the 2022 financial year, and $33.25 in the 2023 financial year). This is called the ‘reasonable amount’.
- Up to reasonable amount, you don’t have to keep receipts. However, you may need to substantiate the amounts if asked – this could be done by bank statements, a copy of the menu, receipts etc.
- More than the reasonable amount, you must keep receipts for your expenses
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