Private ruling: Work related expenses – gym membership
Date of advice: 21 March 2018
Published: June 2018
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the costs associated with physiotherapy, a personal trainer and gym membership? | A1: Yes

Relevant facts and circumstances: You are a professional sports person. You incur expenses on physiotherapy, a personal trainer and gym membership, to maintain your fitness and to ensure you have the physical capabilities to do your job.

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 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. Physiotherapy, a personal trainer and 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 work as a professional sports person. 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 physiotherapy, a personal trainer and gym membership are allowable deductions under Section 8-1 of the Income Tax Assessment Act 1997 .