ATO Interpretative Decision
ATO ID 2001/237 (Withdrawn)
Income Tax
Deductibility of Gymnasium Membership Fees - Security GuardFOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in TD 93/114This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer, a security guard, entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for gymnasium membership fees?
Decision
No. Expenses incurred in gymnasium membership fees are not deductible.
Facts
The taxpayer is employed as a security guard. There is a requirement to be physically fit in order to carry out duties which include apprehending offenders and patrolling customer's premises.
Reasons for Decision
Subsection 8-1(1) of the ITAA 1997 states that you can deduct from your assessable income any loss or outgoing to the extent that it is incurred in gaining or producing your assessable income.
However, under subsection 8-1(2) of the ITAA 1997 you cannot deduct a loss or outgoing to the extent that it is a loss or outgoing of a capital, private or domestic nature.
Taxation Rulings TR 95/13 and TR 95/17 deal with the deductibility of gymnasium membership fees for police officers and Australian Defence Force (ADF) members. Generally, such fees are considered to be private in nature and not deductible under section 8-1 of the ITAA 1997. However, a deduction is allowable for these costs if the police officers or ADF members can demonstrate that strenuous physical activity is an essential and regular element of their specific occupation income earning activities as physical training instructors or members of special combat squads or of special emergency squads.
In the taxpayer's case it is not considered that employment as a security guard would require the performance of regular strenuous physical activity. In these circumstances, gymnasium membership fees are considered a private expense and therefore, not deductible.
Date of decision: 29 June 2001
Legislative References:
Income Tax Assessment Act 1997
section 8-1
Related Public Rulings (including Determinations)
TR 95/13
TR 95/17
Keywords
Association & membership expenses
Fitness expenses
Deductions & expenses
ISSN: 1445-2782
| Date: | Version: | |
| 29 June 2001 | Original statement | |
| You are here | 3 March 2006 | Archived |