The Federal Court found in favour of a long-haul truck driver claiming work-related meal deductions. Here's what the decision says and who it affects.
The ATO released its Decision Impact Statement on Commissioner of Taxation v Shaw [2026] FCA 197 on 13 May 2026, outlining how it will respond to a Federal Court decision that allowed a long-haul truck driver to deduct work-related meal expenses. The decision is the latest in a long line of cases around when meals incurred during work-related travel are deductible.
The taxpayer in Shaw was an employee long-haul truck driver. He claimed deductions for meals taken while away from home overnight on multi-day trips. The Federal Court accepted that, in his circumstances, the meals had the necessary nexus with his employment income to be deductible under section 8-1 of the Income Tax Assessment Act 1997. The decision turned on his specific working pattern - regular multi-day travel, with overnight stops away from home - rather than any general principle that all employees can claim meals.
The general rule remains intact: meals are typically a private expense, not a deductible work expense. Buying lunch at your office is not deductible because you would have eaten anyway. The Shaw exception applies to a narrow category of workers whose work requires being away from their normal place of residence overnight, where meal patterns are genuinely altered by the work.
The ATO has signalled it accepts the court's decision on the specific facts but will continue to scrutinise meal deduction claims carefully. The Decision Impact Statement is open for comment until 12 June 2026 before being finalised.
The ATO continues to publish "reasonable amounts" for overtime meal allowances and travel allowances each year. Where you receive a travel allowance and your claim is within the reasonable amount, full substantiation isn't required - but a diary of dates, locations and amounts is strongly recommended even where receipts aren't strictly needed.
Review the ATO's latest news on tax and superannuation law for the finalised Decision Impact Statement after 12 June 2026. If you're claiming meal deductions for work-related travel, make sure your records support the claim - dates, locations, purpose of travel, amounts. If your situation is complex or significant, consult a registered tax agent. Amended assessments are an option if you've previously underclaimed in similar circumstances, though there are time limits.
Disclaimer: This article reports on the ATO Decision Impact Statement on Commissioner of Taxation v Shaw [2026] FCA 197 released 13 May 2026. It is general information only, not tax advice. Individual circumstances vary. Refer to the official ATO website and consult a registered tax agent for advice on your specific situation.