If you’ve ever worked overtime and grabbed a bite to eat while doino, you might be wondering – can you claim that meal as a tax deduction?
This question is an often-asked one, and the answer is: possibly, but only under specific conditions.
According to the ATO, you can claim a deduction for the cost of a meal you buy and eat when working overtime if you receive an overtime meal allowance under an industrial award, enterprise agreement, or registered workplace agreement. It’s not enough to simply work overtime – you need that official allowance noted on your income statement or payment summary.
Let’s break it down with an example: Say you’re a shift worker or employee who’s asked to stay back unexpectedly, and your employer provides a genuine overtime meal allowance as part of a registered agreement. You buy dinner during that shift. In this case, you can claim the meal expense, provided you’ve kept your receipt and can show the allowance on your records.
However, if your employer gives you a general allowance or covers meals in other circumstances (like regular meal breaks or travel), those costs usually aren’t deductible as overtime meals.
The ATO sets a reasonable amount you can claim without needing to keep receipts – currently $37.65 for the 2024–25 income year. But if you spend more than that, you’ll need to provide evidence (like receipts) to support your claim.
From an accounting perspective, it’s a good idea to:
- Check your payslip or income statement for any listed meal allowances
- Keep your receipts or make a note of meal costs when you work overtime
- Only claim meals tied directly to overtime and covered by the proper agreement
Have you received an overtime meal allowance recently? Need help reviewing whether your allowance qualifies?
Let’s chat before you lodge your return – claiming the proper deductions can make all the difference, but it’s just as essential to avoid the ones that don’t apply.
