What has changed?

Recently, there has been some news on gym memberships and their ability to be deductible from individual tax returns.

This comes from a recent dispute about a prison dog handler and the maintenance of his physical fitness to perform his job. 

Now obviously a Dog handler in a prison is going to need to be very fit to be able to restrain and control an animal used for guarding.

But, what does this mean for other workers?

There are many careers that require you to perform rigorous manual labor and strenuous tasks.

If these people are to stay productive they must be able to claim something right?

In short, it isn’t easy.

 

The Policies in place

The reason why this taxpayer was able to be granted his claims is because the AAT (Administrative Appeals Tribunal) found no reason why the tax ruling TR 65/113 (a deduction incurred by police officers who work regularly with police dogs) should not extend to correctional service officers. 

The ATO have always been particularly stringent with who can and can’t claim gym memberships on tax and while many believe the dog handler may have eased their regulations, the ATO stands by their current framework. 

A spokesperson for the ATO, had commented on the matter, informing us that while there are some people who can claim

It is in “very limited circumstances, where your role requires you have an extremely high level of fitness”.

So what about you? 

Before making a claim for membership, here are some things you have to consider:

• You must have spent the money yourself and weren’t reimbursed 
• It must directly relate to earning your income
• You must be able to provide a record to prove this (e.g receipts)

Below is a list of careers where it’s likely that gym membership fees would be deductible:

• Personal trainers
• Group fitness trainers
• Fitness or sports coaches
• Professional athletes
• Dancers
• Some emergency workers (including some firemen/women and paramedics)

While this list is limited, the current policies may be subject to change or leniency within the future. general manager of technical policy at the IPA, Tony Greco, said the win “could open the floodgates for future claims” for many who require a high level of fitness for work.

These examples are not to say that you can’t claim gym fees for your personal tax return. You can speak to an accountant at Second Look today for advice on your income deductions.

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