Edited version of private ruling

Authorisation Number: 1011897878411

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Ruling

Subject: Fitness expenses

Question

Are you entitled to a deduction for fitness expenses?

Answer

No.

This ruling applies for the following period

Year ended 30 June 2011

Year ending 30 June 2012

The scheme commenced on

1 July 2010

Relevant facts

You are employed in the medical profession.

You are required to spend some of your time with a rescue service.

Part of your duties may require you to work in extreme conditions.

Part of your initial training for this position included survival exercises over several days.

It is a specific condition of your employment that you must achieve a much higher level of fitness than would be normally required.

You have incurred fitness expenses.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Summary

The cost of your personal trainer, gym membership and an exercise road bike are 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 to the extent that they are outgoings of a capital, private or domestic nature.

Generally fitness expenses such as the cost of a gym membership are considered to be private in nature as it ultimately involves the person's own physical wellbeing.

This position does not change even if the person is employed to undertake physical activity as part of their duties. For example, a police officer or a member of the military would not generally be able to deduct the costs of maintaining their fitness levels as a tax deduction.

As discussed in Taxation Determination TD 93/114, a police officer who is carrying out ordinary duties and does not perform regular strenuous physical activity is not entitled to a deduction for expenses incurred in keeping fit.

According to Taxation Ruling TR 95/17, Defence Force members are required to maintain a high standard of general physical fitness; however expenses incurred in maintaining this standard of fitness are considered to be private in nature and not allowable as a deduction.

The example at paragraph 119 of TR 95/17 explains that an infantryman who, in addition to the employer's requirement to undertake fitness training for two hours per day three times per week while on duty, also attended his local gymnasium once a week in his own time. The infantryman is denied a deduction for any cost incurred in attending the gymnasium as the costs are private expenses.

However, TR 95/17 also states that a deduction is allowable for fitness expenses if the ADF member can demonstrate that strenuous physical activity is an essential and regular element of his or her income-earning activities and that the these costs were incurred to maintain a level of fitness well above the ADF general standard. As an example, it states that a member of the Special Air Services Regiment would be entitled to a deduction for their fitness expenses.

TR 95/13 states that a deduction is not allowable for fitness expenses for police officers as it is considered to be private. The exception is if a police officer's income earning activities involve strenuous physical activities on a regular basis. For example, police academy physical training instructors may be able to demonstrate that their income producing activities demand a level of physical fitness well above that generally required of a police officer.

In your case, you are employed in the medical profession and are required to spend some of your time with a rescue service. We acknowledge that your duties working with the rescue service requires you to maintain a certain level of fitness and that there is potential for your duties to require strenuous physical activity. You need to be fit, healthy and skilled to effectively meet the demands of your role as required. A certain level of physical fitness will be important for you to adequately perform your duties.

However, your level of fitness required cannot be considered to be at the highest level nor at a level which is higher than that of an infantryman or police officer (who are not entitled to claim a deduction for fitness expenses). Further, we do not consider that your duties require a degree of regular strenuous physical activity comparable to a police academy physical training instructor or a soldier attached to the elite Special Air Services Regiment.

Accordingly, the fitness expenses that you incur are not deductible.