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Edited version of your written advice
Authorisation Number: 1051316413069
Date of advice: 4 December 2017
Ruling
Subject: Legal expenses
Question 1
Are you entitled to a deduction for your gym membership fees?
Answer
No
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.
You have work related health issues.
Your medical advisor has informed that you need to join a gym so that your mental health improves and does not worsen.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 8-1
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.
We acknowledge that you have been advised by your medical advisor to join a gym for your health, however this expense is considered to be private and domestic in nature.
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
ATO view documents
Taxation Ruling TR 95/17
Taxation Ruling TR 95/19
Taxation Determination TD 93/114
Other relevant comments