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Re: Can an employee claim a deduction for food if they are asked to buy it for a workplace function?

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Newbie

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Replies 3

I’m a public servant and I was asked to provide food for a staff function at my work. The cost of the food wasn’t reimbursed by my workplace. Can I claim this cost as a deduction?
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Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @ziggynessy,

 

Thanks for your patience while we checked this out.

 

It will depend on the nature of what kind of a ‘function’ it is.

 

Generally, costs incurred as part of your work can be  deductible where they are not private and do not relate to the provision of entertainment.

 

For example  you buying coffee for a social discussion with fellow workers at a coffee shop to celebrate a birthday would not be deductible as  it would be  private.

 

Your costs will not be deductible where you pay for ‘entertainment at a work function, such as contributing to the cost of substantial meals provided to staff, being the equivalent of  a ‘business lunch’.

 

If alcohol or hired performers are involved in the function then your contribution would be part of the provision of entertainment and non-deductible.

 

However, if a function involves only finger food and nothing more than a ‘light lunch’ alone then costs of providing this might be  more likely to be deductible.

 

Check out When food, drink or recreation is entertainment.


Thanks

 

KylieS

 

3 REPLIES 3

Community Manager

Replies 0

Hi @ziggynessy,

 

We are just checking this for you and we'll be in touch soon Smiley Happy

 

Thanks, NateH

Most helpful response

Community Moderator

Replies 0

Hi @ziggynessy,

 

Thanks for your patience while we checked this out.

 

It will depend on the nature of what kind of a ‘function’ it is.

 

Generally, costs incurred as part of your work can be  deductible where they are not private and do not relate to the provision of entertainment.

 

For example  you buying coffee for a social discussion with fellow workers at a coffee shop to celebrate a birthday would not be deductible as  it would be  private.

 

Your costs will not be deductible where you pay for ‘entertainment at a work function, such as contributing to the cost of substantial meals provided to staff, being the equivalent of  a ‘business lunch’.

 

If alcohol or hired performers are involved in the function then your contribution would be part of the provision of entertainment and non-deductible.

 

However, if a function involves only finger food and nothing more than a ‘light lunch’ alone then costs of providing this might be  more likely to be deductible.

 

Check out When food, drink or recreation is entertainment.


Thanks

 

KylieS

 

Devotee

Replies 0

If you are out of pocket due to purchasing food for your employer you can normally claim a deduction in your tax return. It's better to get reimbursed directly from your employer as you recieve 100% of the expense back, a deduction will give you a % of the expense back.

 

In the case of working as a public servant - did your manage ask a favor of you? Maybe talk to the person who asked you to purchase the food for the function and see if it was something they wanted to do out of their own pocket or if it was funded by the employer....