Aussies Could Claim Gym Memberships on Taxes

On Apr 2, 2024

Should Gym Memberships Be Tax Deductible for Australians?

If you’re conscious about your health in Australia, you might want to know that a leading health organization suggests that the cost of gym memberships should be tax-deductible. This proposal was put forward in a pre-budget submission by fitness body AUSactive as an urge to amend the current fringe benefits tax legislation.

The Link Between Physical Activity and Disease Prevention

Current data reveals that up to 36% of diseases could see improvements with increased physical activity. Despite this, tax deductions for fitness activities are currently only available for professions demanding a high level of fitness. AUSactive argues this should be extended to all Australian citizens, further encouraging overall health and fitness.

Expanding the Scope of Tax Deductible Fitness Activities

Should AUSactive’s proposal be accepted, gym memberships along with activities like pilates, yoga, and tai chi could qualify for a tax deduction. The view is that this would promote regular exercise, contributing to a healthier and more productive population. Visit this Tax Time page for more information on tax-related topics.

An Investment in Health

AUSactive’s chief, Barrie Elvish, sees this move as a “no-brainer”. He contrasts the tax deduction for private health insurance to the proposed gym membership tax deduction. While the former seeks to ease the demand on state hospitals, the latter aims to keep Australians out of the healthcare system in the first place. In his view, making gym memberships tax-deductible would alleviate living costs for health-conscious individuals whilst promoting regular exercise and a healthier population.

The Current Tax Deduction Landscape

Currently, exercise in gyms, pilates, yoga studios, and leisure centres is considered entertainment. Elvish challenges this categorization, stating that comparing a pub visit to a gym session is absurd. He finds it ironic that taxpayers can claim deductions for donations to health-related not-for-profit organisations, but not for proactive health improvement.

The Potential Impact of Tax Deductions for Gym Memberships

If tax deductions were implemented for gym memberships, it could potentially reduce the $27bn spent in the health system treating diseases triggered by inactivity. Moreover, it could encourage more employees to return to offices post-pandemic. The budget decision is anticipated to be announced on May 14.