When it comes to tax time, a lot of people ask us the question: can you claim a gym membership on tax?
The answer is yes, but only for certain professions where there is a clear, demonstrable link between the expense and the your income-earning activities.
Our experts have prepared this comprehensive guide to help you maximise your tax refund in 2024.
Quick Summary
- Can you claim a gym membership on tax? Gym fees and fitness-related expenses are generally not deductible.
- Only certain professions eligible: Professional athletes, dancers, certain armed forces members, personal trainers, fitness instructors, law enforcement officers, firefighters, aviation professionals, construction workers, and maritime workers.
- Required documentation : Keep receipts, invoices, and a log or diary of work-related fitness activities.
- Non-deductible examples: General fitness for teachers or office workers, personal health improvements.
- Deductible examples: Professional athletes, dancers, personal trainers, police officers in tactical units.
- Compliance: Follow ATO guidelines, maintain accurate records, and avoid incorrect claims to prevent audits and penalties.
How to Claim a Gym Membership on Tax
First and foremost, it’s important to know that gym fees and fitness-related expenses are generally not deductible for most individuals. However, there are exceptions for certain professions.
To claim these expenses, there must be a direct and necessary connection between your fitness expenses and your income-earning activities.
1. Establish Your Eligibility
Professional Athletes
- Sportspersons: If you are a professional sportsperson, your fitness is essential to your ability to earn an income. This includes athletes in sports like football, cricket, swimming, and athletics.
Performers
- Dancers and Actors: Performers who must maintain a high level of physical fitness to perform their roles can claim these expenses. This includes ballet dancers, theatre actors, and stunt performers who need to stay in peak physical condition.
Armed Forces Members
- Military Personnel: Specific roles within the armed forces that require maintaining peak physical condition may also qualify. This includes special forces, commandos, and other physically demanding roles.
Personal Trainers and Fitness Instructors
- Fitness Professionals: Personal trainers, gym instructors, and fitness coaches who need to maintain a certain level of fitness to perform their job duties and demonstrate exercises can claim gym-related expenses.
Law Enforcement and Emergency Services
- Police Officers and Firefighters: Certain roles in law enforcement and emergency services may require a high level of fitness. Police officers in tactical units and firefighters who need to be physically fit for rescue operations can claim these expenses.
Pilots and Flight Attendants
- Aviation Professionals: Some aviation roles may require maintaining a specific fitness level for safety and regulatory reasons. Pilots and flight attendants, particularly those in long-haul or high-stress roles, might qualify.
Construction and Manual Labour Workers
- Construction Workers: Certain construction roles that demand high physical fitness levels, such as riggers, scaffolding workers, and heavy machinery operators, may be eligible if they can demonstrate the necessity of maintaining fitness for their job.
Maritime Workers
- Seafarers and Offshore Workers: Maritime workers, including those working on ships or offshore oil rigs, often require a high level of physical fitness to perform their duties safely and effectively.
For most other professions, gym fees for general fitness or personal health are not deductible. For example, a teacher or office worker cannot claim gym fees just because staying fit makes their job easier.
2. Compile the Required Documentation
If you fall into one of the eligible categories, thorough documentation is crucial.
The ATO requires clear proof that your gym and fitness expenses are directly related to your job.
As such, ensure that you have the below:
- Receipts and Invoices: These should detail the expenses incurred.
- Log or Diary: Maintain a record of your work-related fitness activities, noting how they are necessary for your income-earning activities.
You must be able to clearly demonstrate the link between your fitness expenses and your job requirements.
This means showing that without these fitness activities, you would not be able to perform your job effectively.
3. Choose Your Lodgement Method
Once ready, your tax return can be submitted
- Online via myTax: Individuals can submit their tax return online using the ATO’s myTax service.
- Through a Tax Agent: If your tax situation is more complex or you prefer professional assistance, you can lodge your return through a registered tax agent, such as us.
Examples and Scenarios
Non-Deductible Situations
- General Fitness: A teacher or office worker cannot claim gym fees simply because it helps them stay healthy.
- Personal Health: General health improvements, like going to the gym to lose weight, are not deductible.
Deductible Situations
- Professional Athlete: A football player can claim gym fees as maintaining fitness is essential for their performance.
- Dancer: A ballet dancer who needs to stay in peak physical condition for performances can claim these expenses.
- Personal Trainer: A fitness instructor who demonstrates exercises and needs to stay fit for their job can claim these expenses.
- Police Officer: A member of a tactical unit who must maintain high fitness levels for operational readiness can claim gym fees.
Compliance Considerations
Following the ATO guidelines is essential to avoid potential audits and penalties.
Incorrectly claiming deductions can lead to fines and a requirement to repay the claimed amounts with interest.
Ensure that you:
- Understand the Rules: Know the specific legislative criteria that govern these deductions.
- Maintain Accurate Records: Keep all necessary documentation and be prepared to provide proof if required.
Estimate Your Tax Refund
Conclusion
For most people, these expenses are not deductible.
Always keep thorough records and ensure compliance with ATO guidelines to avoid potential issues.
For those considering claiming gym-related expenses, make sure to review your eligibility and maintain proper documentation.
If in doubt, consult with a tax agent to ensure you are making accurate and compliant claims.
By understanding these guidelines, you can make informed decisions and ensure your tax return is accurate and compliant.
