Deductibility of Gymnasium Membership Fees - Security Guard

Is the taxpayer, a security guard, entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for gymnasium membership fees?

No. Expenses incurred in gymnasium membership fees are not deductible.

The taxpayer is employed as a security guard. There is a requirement to be physically fit in order to carry out duties which include apprehending offenders and patrolling customer's premises.

Subsection 8-1(1) of the ITAA 1997 states that you can deduct from your assessable income any loss or outgoing to the extent that it is incurred in gaining or producing your assessable income.

However, under subsection 8-1(2) of the ITAA 1997 you cannot deduct a loss or outgoing to the extent that it is a loss or outgoing of a capital, private or domestic nature.

Taxation Rulings TR 95/13 and TR 95/17 deal with the deductibility of gymnasium membership fees for police officers and Australian Defence Force (ADF) members. Generally, such fees are considered to be private in nature and not deductible under section 8-1 of the ITAA 1997. However, a deduction is allowable for these costs if the police officers or ADF members can demonstrate that strenuous physical activity is an essential and regular element of their specific occupation income earning activities as physical training instructors or members of special combat squads or of special emergency squads.

In the taxpayer's case it is not considered that employment as a security guard would require the performance of regular strenuous physical activity. In these circumstances, gymnasium membership fees are considered a private expense and therefore, not deductible.