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Edited version of your written advice
Authorisation Number: 1051320753458
Date of advice: 14 December 2017
Ruling
Subject: Deduction of accommodation expenses
Question 1
Are your gym membership fees an allowable deduction?
Answer
Yes
This ruling applies for the following periods:
Year ending 30 June 2017
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You are a professional sportsperson
You are a member of a professional sporting organisation
You have competed internationally and locally in this field
Because you are competing at a world class level you are required to maintain an extremely high level of fitness
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Detailed reasoning
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.
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 participate in physically demanding international sports competitions. 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 gym membership is an allowable deduction under Section 8-1 of the Income Tax Assessment Act 1997.
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