CW 17C Payments for overtime meals and certain other allowances
Exempt income: overtime meals

(1)

An amount that an employer pays to or on behalf of an employee for a meal for the employee when the employee is working overtime is exempt income of the employee.

Exempt income: certain sustenance allowances

(2)

An amount that an employer pays to an employee as a sustenance allowance for the employee for a day is exempt income of the employee if—

(a)

the employee works a minimum of 7 hours on the day; and

(b)

their employment requires them—

(i)

to work outdoors and away from their employment base for most of the day; and

(ii)

to undertake a long period of physical activity in travelling through a neighbourhood or district on foot or by bicycle; and

(c)

it is not practicable for the employer to provide sufficient sustenance on the day for the period when the employee is working outdoors; and

(d)

the allowance recognises—

(i)

the arduous physical nature of the employee’s work as described in paragraph (b); and

(ii)

that the employer would normally provide tea, coffee, water, or similar refreshments at the employment base in the course of their business.

Eligibility requirements: overtime meals

(3)

Subsection (1) applies only if—

(a)

the employee has worked at least 2 hours’ overtime on the day of the meal; and

(b)

either—

(i)

the employee’s employment agreement provides for pay for overtime hours worked; or

(ii)

the employer has an established policy or practice of paying for overtime meals.

Eligibility requirements: sustenance allowances

(4)

Subsection (2) applies only if the employer has an established policy or practice of paying a sustenance allowance.

Actual cost or reasonable estimate

(5)

The amount paid must be—

(a)

the actual cost to the employee, and for an overtime meal referred to in subsection (1), with documentation required for amounts over $20 per meal; or

(b)

a reasonable estimate of the expenditure likely to be incurred by the employee or a group of employees for whom an amount is payable.

Meaning of overtime

(6)

For the purposes of this section, overtime, for a person and a day, means time worked for an employer on the day beyond the person’s ordinary hours of work as set out in their employment agreement.

Defined in this Act: amount, employee, employer, exempt income, overtime, pay

Section CW 17C: inserted (with effect on 1 April 2008), on 6 October 2009, by section 45 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).