Private ruling: Legal expenses
Date of advice: 4 December 2017
Published: April 2018
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

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

Relevant facts and circumstances: You are a professional. You have work related health issues. Your medical advisor has informed that you need to join a gym so that your mental health improves and does not worsen.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 8-1 Detailed reasoning | 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. | We acknowledge that you have been advised by your medical advisor to join a gym for your health, however this expense is considered to be private and domestic in nature. | 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 | ATO view documents | Taxation Ruling TR 95/17 | Taxation Ruling TR 95/19 | Taxation Determination TD 93/114 | Other relevant comments