Private ruling: Deduction of accommodation expenses
Date of advice: 14 December 2017
Published: May 2018
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Are your gym membership fees an allowable deduction? | A1: Yes

Relevant facts and circumstances: You are a professional sportsperson You are a member of a professional sporting organisation You have competed internationally and locally in this field Because you are competing at a world class level you are required to maintain an extremely high level of fitness

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 Detailed reasoning | Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. | Gym membership fees are not normally an allowable deduction as they are generally considered to be private in nature, however, Taxation Ruling (TR) 95/13, paragraph 109 provides an exception where a police officers’ income earning activities involve strenuous physical activity on a regular basis. | This exception is extended, in paragraph 110 of the ruling, to other professions that can demonstrate that their income producing activities demand a high level of physical fitness. | The extension to other professions is reinforced in TR 95/17 which refers to some defence force members that are required to maintain a very high level of fitness above the general standard and as a consequence are able to claim the cost of attending fitness courses or membership of a gymnasium. | In your case, there is a requirement to maintain peak physical fitness in order to be able to participate in physically demanding international sports competitions. As there is a direct correlation between the costs incurred in maintaining your fitness level and the activities associated with gaining or producing your assessable income, the gym membership is an allowable deduction under Section 8-1 of the Income Tax Assessment Act 1997 .