Private ruling: Gym expenses
Published: February 2013
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the cost of your gym membership fees? | A1: No.

Relevant facts and circumstances: You are an employee. As a condition of your employment you are required to maintain mandatory qualifications and required competencies including medical and fitness requirements. You have incurred gym membership expenses to use the gym equipment to maintain your fitness.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 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. Taxation Rulings TR 95/13 and TR 95/17 deal with the deductibility of gym membership fees for police officers and Australian Defence Force (ADF) members respectively. Although you are not employed in these professions, the information contained in these rulings is relevant to your circumstances. TR 95/13 states that a deduction is not allowable for fitness expenses for police officers as it is considered to be a private expense. The only exception being, if a police officer's income earning activities involve strenuous physical activities on a regular basis. Police Academy physical training activities, members of special emergency squads, diving squads and police officers who work regularly with police dogs and train them, may be able to demonstrate that their income producing activities demand a high level of physical fitness. TR 95/17 sets down a similar view for ADF members in that fitness expenses are not deductible. An example provided TR 95/17 refers to a member of the Special Air Services Regiment (SAS) who is paid to maintain a very high level of fitness, in this case some fitness expenses were allowable deductions. However, the level of fitness required of a SAS member and that of an ordinary infantryman is clearly differentiated. Both taxation rulings adhere to the principle that unless a taxpayer's normal duties require a very high (above and beyond normal) fitness level, deductibility of expenses will be denied. Taxation Determination TD 93/114 also supports this view. | Detailed Reasoning - Application to your situation: In your case, we acknowledge that your duties require you to maintain a certain level of fitness. However, we do not consider the level of fitness required in your case to be at the highest level nor at a level which makes it an essential and regular element of your employment. Accordingly, the cost of your gym membership is considered to be a private expense and not allowable under section 8-1 of the ITAA 1997.

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