Private ruling: Work related deductions
Date of advice: 5 February 2025
Published: 17 March 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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

Relevant facts and circumstances: You are a professional in your field. For the past few months, you have been a member of specialised areas. You commenced with area 1 a couple of years ago and you have been in area 2 for several years. Both roles are part-time casual basis. Work in these areas is based on operational demand. You would work a number of hours per year in the area 1. You work a number of hours per month in area 2. You have annual assessments for both areas. You are required to pass a fitness test and capability test. You are not able to provide any documentation in relation to your activities. Your employer provides you with access to a gym. You wish to claim the costs associated with a gym membership.

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. Generally, fitness expenses such as the cost of a gym membership are private in nature and no deduction is allowed. Whilst regulations may require you to remain in a physically fit condition, this does not mean expenditure related to keeping fit is allowable as an income tax deduction. The relevant taxation rulings that cover your profession adhere to the principle that unless a taxpayers normal duties require a very high (above and beyond normal) fitness level, deductibility of expenses will be denied. However, a deduction is allowable for these costs if strenuous physical activity is an essential and regular element of the taxpayer's income-earning activities, in which case the costs would be incurred to maintain a level of fitness well above the general standard. In your case you work in specialised areas on a casual part-time basis when required. Your work is not a full-time commitment and you do not perform the duties required for each area on a day-to-day basis. The level of fitness required is not required in your day-to-day work life. The gym fees are therefore a private choice you are making in relation to the maintenance of your fitness level. 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.