Edited version of private ruling

Authorisation Number: 1011618846473

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Ruling

Subject: work related expenses

Are you entitled to a deduction for a percentage of the cost of your gym membership fees?

No.

This ruling applies for the following period:

Year ended 30 June 2010

The scheme commences on:

1 July 2010

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You are employed with a government department.

An integral part of the role is the implementation and participation in organised sports programs. This includes programs of individual and team sports.

You are required to be physically fit to effectively perform your duties, and therefore you have joined a gymnasium with a view to improve your fitness.

You have incurred a joining fee and will incur ongoing membership fees as a result of the gym membership.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1.

Summary

The cost of your gym membership is considered to be a private expense and not allowable.

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.

Taxation Ruling TR 95/13 and TR 95/17 deal with the deductibility of gym membership fees for police officers and Australian Defence Force (ADF) members respectively. Although you are not employed in these professions, the information contained in these ruling is relevant to your circumstances.

TR 95/13 states that a deduction is not allowable for fitness expenses for police officers as it is considered to be private. The only exception being if a police officers income earning activities involve strenuous physical activities on a regular basis. Police Academy physical training activities, members of special emergency squads, diving squads and police officers who work regularly with police dogs and train them, may be able to demonstrate that their income producing activities demand a high level of physical fitness.

TR 95/17 sets down a similar view for ADF members in that fitness expenses are not deductible. An example provided in the addendum of TR 95/17 refers to a member of the Special Air Services Regiment (SAS) who is paid to maintain a very high level of fitness, in this case some fitness expenses were allowable deductions. However, the level of fitness required of a SAS member and that of an ordinary infantryman is clearly differentiated.

Both taxation rulings adhere to the principle that unless a taxpayer's normal duties require a very high (above and beyond normal) fitness level, deductibility of expenses will be denied. Taxation Determination TD 93/114, which deals with fitness related expenditure for police officers, also supports this view.

Application to your situation

In your case, we acknowledge that your duties as a youth officer requires you to maintain a certain level of fitness. However, we do not consider the level of fitness required in your case 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 your gym membership is considered to be a private expense and not allowable under section 8-1 of the ITAA 1997.