Edited version of private advice

Authorisation Number: 1051693848239

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This edited version has been found to be misleading or incorrect. It does not represent the ATO’s view of the relevant law.

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Edited versions cannot be relied upon as precedent or used for determining how the ATO will apply the law in other cases.

Date of advice: 09 June 2020

Ruling

Subject: Special operations fireman work / fitness expenses

Question One:

Can You claim a deduction for the fitness expenses incurred under section 8-1 of the Income Tax Assessment Act 1997?

Answer

Yes. You are a special operations fireman and your role requires you to maintain a fitness level well above the normal firefighting standard and ongoing strenuous physical activity is an essential and regular part of your work.

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 or are necessarily incurred in carrying on a business for the purpose of 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, or a provision of the ITAA 1997 prevents it.

Generally, you can't claim fitness expenses, such as gym fees, to maintain your personal fitness. In very limited circumstances you can claim fitness expenses if your role requires you to maintain a fitness level well above the normal firefighting standard and ongoing strenuous physical activity is an essential and regular part of your work.

In your case, you are a firefighter who works in a specialist search and rescue operations team; you are required to always be prepared for an emergency situation. You are trained in a range of specialist skills, including which comprises specialist swift water rescue, urban search and rescue, confined space rescue, trench and vertical rescue. You enter flood waters to rescue trapped persons when required. You are regularly tested on your fitness and ongoing strenuous physical activity is an essential part of the job. You are expected to maintain an extremely high level of fitness to fulfil your employment duties. There is a sufficient connection between your fitness expenses and the derivation of your income.

The expenditure was incurred in gaining or producing assessable income. As you have met the requirements for eligibility; you can claim fitness expenses associated with maintaining your level of fitness well above the normal standard for firefighters; such as gym clothes, skipping ropes, weights, gym fees, yoga fees and swimming pool entry.

Question Two:

Can You claim a deduction for the decline in value of your fitness equipment?

Answer

Yes.

The Commissioner accepts that you use the fitness equipment as a component of your fitness regime and that your use of it is wholly for a taxable purpose.

If a tool or item of equipment cost you $300 or less, and you use it for work only, you can claim a deduction for the whole cost in the year you purchased it. Otherwise, you can claim a deduction for the cost over the life of the item (that is; depreciation).

This ruling applies for the following:

1July 2018 to 30 June 2019

1July 2019 to 30 June 2020

Relevant facts and circumstances

You are employed as a special operations fireman, in a full time permanent role. You have been employed for many years in a specialist search and rescue operations team; you are required to always be prepared for an emergency situation.

You are trained in a range of specialist skills, which comprises specialist swift water rescue, urban search and rescue, confined space, trench and vertical rescue. You enter flood waters to rescue trapped persons when required.

You are regularly tested on your fitness and ongoing strenuous physical activity is an essential part of your job. You are expected to maintain an extremely high level of fitness to fulfil your employment duties.

You use a variety of training techniques to achieve and maintain the required level of strength and fitness; including running, swimming, weight training, yoga and gymnasium workouts.

Due to the COVID -19 pandemic you purchased some fitness equipment, in order to train on the water away from crowds and to maintain social distance.

You attend specialist Rescue Workshops and swift water training that measures your physical fitness and rescue knowledge. Costs for these courses / training, including travel, accommodation, meals and incidentals are covered by your employer.

You have incurred outgoings (the fitness expenses) in undertaking the fitness activities listed above. No allowance or reimbursement is provided by your employer for training / fitness expenses

incurred.

Relevant legislative provisions

Income Tax Assessment Act 1997section 8-1

Income Tax Assessment Act 1997 section 40-25