What Is an Overtime Meal Allowance?

An overtime meal allowance is an additional payment your employer gives you to cover the cost of a meal when you work overtime. It is commonly included in awards and enterprise agreements. When your employer pays this allowance, it counts as assessable income and must be included in your tax return.

The ATO allows you to claim a deduction for the cost of meals you buy while working overtime, up to the reasonable amount. If your employer pays the allowance and you spend it on food, you can claim the deduction without keeping individual receipts — as long as you stay within the reasonable amount threshold.

If your employer does not pay an overtime meal allowance, you can still claim the cost of overtime meals. However, you must keep all receipts and be able to show the expense directly relates to your overtime work, not just a regular meal you would have eaten anyway.

ATO Reasonable Amounts for Overtime Meals (FY 2025-26)

The ATO publishes reasonable amount tables each year. These amounts tell you the maximum you can claim per meal without needing to keep written evidence. For FY 2025-26 (the year ending 30 June 2026), the reasonable amounts for overtime meals have been updated.

If you claim more than the reasonable amount, you need to keep all receipts and be prepared to justify the higher expense. The ATO requires you to actually spend the money on meals — you cannot claim the allowance as income without spending it on food.

How to Claim Overtime Meal Deductions in Your Tax Return

If your employer pays you an overtime meal allowance, you need to include the allowance amount in your assessable income. You then claim the deduction for the meals you purchased during overtime. The net effect is that you are not taxed on money you genuinely spent on food for work.

To claim without receipts, you must meet all of these conditions: your employer paid the allowance under an industrial instrument (award, enterprise agreement), the allowance is shown on your payment summary, and the total you claim per meal does not exceed the ATO's reasonable amount. If you meet these conditions, the ATO generally accepts your claim without receipts.

If you claim more than the reasonable amount, you need written evidence for every meal. This includes itemised receipts showing the date, amount, and what you purchased. The ATO may also request evidence that you actually worked overtime on the claimed dates, such as timesheets or rosters.

What Counts as Overtime Work?

Overtime means work performed outside your ordinary working hours. The definition depends on your specific award or employment agreement. Generally, any time worked beyond your standard hours that attracts a penalty rate or overtime loading qualifies.

You cannot claim a deduction for meals you eat during regular work hours, even if you buy them at work. The key requirement is that you are working overtime — not just having a late lunch or an early dinner during your normal shift. Use our take-home pay calculator to see how overtime income and deductions affect your overall tax position.

The meal must be purchased during or immediately after your overtime period. You cannot claim a meal that you ate before starting overtime. The expense must also be incurred because of the overtime work — if you would have eaten the same meal at home anyway, the ATO may disallow the claim.

Overtime Meal Allowance vs Travel Allowance

Many workers confuse overtime meal allowances with travel allowances. A travel allowance covers meals and accommodation when you are away from home overnight for work. An overtime meal allowance covers meals when you work extra hours but return home the same day.

The reasonable amounts and record-keeping rules differ between the two. For travel allowances, the ATO publishes separate reasonable amounts based on the location and duration of travel. For overtime meal allowances, the amounts are simpler and based only on the meal type.

If your employer pays you both allowances, you must treat them separately in your tax return. Never combine amounts or claim a meal twice. Check your payment summary or ask your employer which type of allowance they are paying. For more on how allowances affect your tax, try our income tax calculator.

Record Keeping for Overtime Meal Claims

Even if you do not need receipts for each meal, you should still keep a diary or log of your overtime meal claims. Record the date, the overtime hours worked, the amount spent, and the nature of the meal. A simple spreadsheet works well for this purpose.

If the ATO audits your return, they may ask for evidence that you genuinely worked overtime on the claimed dates. Keep copies of your timesheets, rosters, payslips showing overtime hours, and any correspondence with your employer about overtime shifts.

You should keep records for five years from the date you lodge your tax return. The ATO can review claims within this period. If you lose your records and the ATO questions your claim, you may have to repay the deduction plus interest and penalties.

How Overtime Meal Deductions Affect Your Other Tax Obligations

Claiming overtime meal deductions reduces your taxable income, which can affect several other tax calculations. A lower taxable income means you may pay less Medicare Levy and may be eligible for a higher Low Income Tax Offset (LITO).

For FY 2025-26, LITO provides up to $700 in tax relief, phasing out between $37,500 and $66,667. If your overtime meal deductions bring your income below these thresholds, you could receive additional benefits through the offset. The salary sacrifice calculator can help you model how deductions affect your overall position.

Overtime meal deductions do not directly affect your superannuation contributions, since super is calculated on your ordinary time earnings. However, reducing your taxable income may affect your eligibility for government super co-contributions if your income falls below the thresholds.

Frequently Asked Questions

What if my employer pays a flat overtime meal allowance regardless of whether I actually buy a meal?

If your employer pays a flat allowance that is not tied to actual meal purchases, you must include it as assessable income. You can only claim a deduction for the amount you actually spent on meals. If you did not buy any meals, you cannot claim a deduction for the allowance.

Can I claim overtime meals if I work from home?

Generally, no. The ATO's overtime meal allowance rules apply to meals purchased while working overtime outside the home. If you work overtime from home, your usual meal costs are considered personal expenses and are not deductible. The 67 cents per hour working from home method covers home office running costs only.

Do I need a separate logbook for overtime meal claims?

You do not need a formal logbook, but you should maintain a record of each overtime meal claim. A diary, spreadsheet, or notes app record showing the date, overtime hours worked, and meal amount is sufficient. This helps if the ATO ever reviews your claim.

Can I claim meals for overtime worked on weekends or public holidays?

Yes, overtime meal deductions apply regardless of the day. Whether you work overtime on a weekday, Saturday, Sunday or public holiday, the same rules apply. You must be working overtime as defined by your award or agreement, and the meal must be purchased because of that overtime work.

What happens if I claim more than the reasonable amount without receipts?

The ATO may disallow the portion of your claim that exceeds the reasonable amount. You may be asked to repay the excess deduction plus interest. In serious cases of overclaiming, the ATO can impose penalties of up to 75% of the tax shortfall. Always stay within reasonable amounts or keep full receipts.