Private ruling: Work related expenses
Published: August 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for the cost of massages? | A1: No.

Relevant facts and circumstances: You receive a weekly massage from a trained recognised professional to maintain your body. The massage is a preventative treatment to ensure no breakdown of your body which is used in creating the primary source of income. Your occupation does not require a high level of fitness.

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

Reasons for decision: Summary: Section 8-1 of the 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. Generally, expenses incurred in the maintenance of physical fitness and wellbeing are not deductible as they are private and domestic expenditure. However, fitness related expenses are deductible where a taxpayer is required to maintain a very high level of fitness, well above the profession's general standard. For example, in Taxation Ruling TR 95/17 Income tax: employee work-related deductions of employees of the Australian Defence Force , the Commissioner of Taxation states at paragraphs 119 and 119A that an infantryman in Australian Defence Force will be denied a fitness related expense. In contrast, a member of the Special Air Services Regiment (SAS) will be allowed a fitness related expense. The rationale being that the SAS officer is a member of an elite force and is therefore required to maintain a much higher level of fitness than other Defence Force personnel. Where an employee incurs expenses as part of a program to maintain a general standard of fitness, such expenses are considered of a private or domestic nature. In your case you incur expenses to receive massages as a preventative treatment to ensure there is no breakdown to your body which is used to generate your income. As your job does not require a much higher level of fitness than most normal occupations your massage expenses are considered to be private in nature and not deductible.