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Ruling
Subject: Work related expenses
Question 1
Are you entitled to a deduction for the purchase of fitness equipment?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 2013
The scheme commences on:
1 July 2012
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
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.