Hot Issues
spacer
How is your super going, ready for retirement?
spacer
ATO increasing data exchange with international regulators
spacer
Illegal SMSF early access scheme leads to $6,000 fine
spacer
Our 'hardest' SMSF tasks
spacer
Uber drivers hit for 10% tax
spacer
Lack of literacy promotes unrealistic goals
spacer
Taxpayer failed to prove that payments were “loans”
spacer
New STP dates confirmed as ATO goes on compliance blitz
spacer
ATO flags compliance project for FY17/18
spacer
Items that heat up your depreciation deductions
spacer
Doing a budget is a good idea but ....
spacer
Government ‘undermines’ tax system in new moves on property expenses
spacer
Taxpayer denied deduction for work expenses of $60,000
spacer
Overtime meal expenses disallowed because no allowance received
spacer
Key Economic Indicators, 2017
spacer
Government to shut down salary sacrifice loophole
spacer
Crowdfunding legislation gets greenlight
spacer
ATO heavyweight responds to hacking fears
spacer
Checklist - Individuals Tax Returns - 2017
spacer
Checklist - Tax time 2017 - Company, Trust & Partnership
spacer
Checklist - Superannuation Funds - 2017
spacer
ATO to ramp up scrutiny of $20K tax break use
spacer
‘Bank-like heists’ make way for new wave of cyber crime
spacer
ATO reports on key contraventions for 2016-17
spacer
ATO, mid-tiers warn on common expenses myths
spacer
SMSF trustees told to take action on contributions
spacer
Higher instant asset write-off threshold for small business extended
Article archive
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Overtime meal expenses disallowed because no allowance received

 

A taxpayer has failed in claiming deductions for overtime meal expenses.

 

 

The Administrative Appeals Tribunal (AAT) denied his appeal because he was not paid an allowance under an industrial agreement.

The AAT noted that whether overtime meal expenses are deductible according to the tax law depends on whether the taxpayer receives a food or drink allowance under an industrial instrument. The AAT agreed with the Commissioner of Taxation that the taxpayer had not received an allowance of this kind and, in fact, had not received any allowance at all. Whilst his salary had been increased to compensate him for the higher costs, this was not enough to justify a deduction.

This decision could be applied to many other allowances – e.g. travel, tools and telephone.

It should be part of future wages and salary review for any employee to consider whether “reimbursement” is a better alternative to an allowance.  There will be greater obligations on the employer, but overall it can be a better outcome. 

 

AcctWeb