Are meal expenses tax deductible?

Did you know that the income tax and GST treatment of meal expenses differs if you’re self-employed compared to being an employee? It’s different again under the entertainment expenditure rules.

Self-employed

If you’re self-employed, usually you can’t deduct meal expenses as they are deemed a private or domestic expense, although in certain situations there may be some exceptions. However, an extra expense may be deductible where you are required to work in a remote location or unusual hours. It’s not enough to just be ‘working away’, you must have no choice but to incur additional expenses for meals. That cost, above normal meal expenses, is deductible.

Employees

If you’re an employee, meal expenses are deductible when it’s a straightforward reimbursement for out-of-pocket work-related expenses. The amount is tax deductible when you require an employee to work away from their workplace, to travel for work, attend a business meeting, conference or training course, or perform overtime.

Claiming GST

Whether you can claim GST on the meal(s), is based on how the income tax was treated. If you can’t deduct expenses for income tax purposes, you can’t claim GST on the expense. If you can deduct the expense for income tax purposes and you’re GST registered, then you can claim the GST on the expense.

Entertainment Expenses

Where it can get more complicated is entertainment expense rules. These rules don’t distinguish between types of business entities but instead on the type of entertainment and the connection between the expense and business income. If you’re self-employed and incur meal expenses that are classed as entertainment expenditure, you can deduct 50% of the cost, including the cost of your meal.

Need some help?

We can help you figure out whether business meal expenses are tax deductible with advice for your specific situation. Get in touch to discuss any questions you may have on this.

< Older Post

Newer Post >

5 benefits of working with a business advisor

18 April 2026

As your accountants can do so much more than just the bookkeeping. We’ve outlined 5 key areas where we can offer deeper, business-critical advice and support.

Cow with black and white markings standing in a green field with a farm in the background.

Tips for Moving Day

17 April 2026

It's that time again and Moving Day is upon. Moving Day' is a big day in the farming industry. To help you with a smooth transition here are some tips: Early preparation Make sure sharemilker or contract milker contracts are signed. Plan a farm inspection with relevant parties (farm owner, incoming and outgoing sharemilkers, farm manager, advisor). Recruit and finalise employment agreements for new farm staff. Communicate plans and dates with everyone involved. Contact your insurer and utility providers. Farm owner responsibilities Make sure employees leave the houses clean and tidy. Carry out house inspections for maintenance. Comply with healthy home standards. Confirm departure and arrival times with tenants. Consider drug testing, if needed. Animal movements and biosecurity Plan animal movements carefully. Clean and disinfect farm equipment and machinery. Minimise the risk of introducing exotic pests. About 5,000 farmers do this every year. Talking clearly and planning well makes this important farming tradition go smoothly.