Here’s why you generally can’t claim a tax deduction for buying coffee (or any food/drinks) on the way to work or a worksite in Australia:
It’s a private expense
The ATO classifies food and drink as a private expense — it’s something you consume for personal comfort or sustenance, not directly for earning your income.
Even if you’re grabbing it before a long day on site, it’s still considered something you’d normally consume in your private life, not part of carrying out your employment duties.
Example:
You stop at a café and buy a coffee and sandwich on the way to a client’s site.
The cost is private — not deductible — even if you’re about to work a 10-hour day.
Not “incurred in the course of earning income”
To be deductible under section 8-1 of the Income Tax Assessment Act 1997, the expense must be:
- directly connected to earning assessable income, and
- not of a private, domestic, or capital nature.
Buying coffee before you start working doesn’t have a direct connection — it’s before you’re performing work duties.
When you can claim meals or drinks
There are limited circumstances where food or drink is deductible:
- Travelling for work (e.g. overnight travel where you stay away from home and receive no meal allowance).
- Entertaining clients (if you’re in business and it’s not entertainment subject to FBT).
- Meal allowance – if you receive a bona fide allowance under an award and declare it as income, you can claim reasonable meal costs.
Example of a deductible situation
A construction worker travels from Bathurst to Sydney for two days to supervise a project, staying overnight.
Meals, including coffee and breakfast, purchased while away are deductible because they’re part of work-related travel.
Key ATO Rulings & Examples
TR 2021/1 – Income tax: when are deductions allowed for employees’ transport expenses?
Although this ruling mainly covers travel, it includes principles that apply to meals and incidental costs.
Paragraph 12:
“The cost of food, drink and accommodation is generally a private expense and not deductible unless the employee is travelling away from home overnight in the course of their employment.”
So unless you’re away overnight for work, any coffee or meal costs on the way to or from a job site are private and not deductible.
ATO Example – Meals on ordinary workdays
From the ATO’s “Deductions you can and can’t claim – Employees” guide:
Example:
“Jai is an electrician who buys lunch from a café each day on his way to a worksite. Even though Jai eats during his workday, his meals are private and not deductible.”
“If Jai travels overnight for work and buys a meal while travelling, he can claim that cost.”
Source: ATO website – Work-related expenses you can and can’t claim
ATO Example – Meal allowances
From ATO – Employee Allowances and Reimbursements:
“If you receive a meal allowance under an industrial award and you declare it as income, you can claim a deduction for meals purchased while working overtime or travelling for work.”
“However, if you buy your own meals without receiving an allowance, it’s a private expense.”
Source: ATO – Allowances and reimbursements
TR 2004/6 – Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses
This ruling confirms that only specific, award-based meal allowances can make meals deductible — otherwise, they remain private.
Paragraph 13:
“The cost of meals is generally not deductible unless it is incurred while travelling away from home or when an overtime meal allowance is received under an industrial instrument.”
ATO “Occupation guide” examples
From ATO’s Building and Construction Industry Employee Guide:
“You can’t claim the cost of food, drink or snacks you buy and consume while at work – even if you work long hours.”
“You can claim meals if you travel away overnight for work.”
Source: ATO – Building and construction employee deductions
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