Private ruling: Work related expenses
Published: January 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for the purchase of fitness equipment? | A1: No.

Relevant facts and circumstances: You are an employee. You are looking at purchasing fitness equipment to keep your weight in check.

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 fitness equipment are considered to be private in nature and no deduction is allowed. 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 such as a Police Academy physical training instructor or a member of the Special Air Services Regiment (SAS). Their costs would be incurred to maintain a level of fitness well above the general standard. In your case we do not consider the level of fitness required for your income-earning activities 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 fitness equipment is considered to be a private expense and not an allowable deduction under section 8-1 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.