Tax-Saving Tips

Are fitness expenses tax deductible?

Fitness expenses will be deductible if employees need an abnormal level of fitness to perform their job. Typically, this applies to only professional sportspeople, physical training instructors with the defence force and police force, firefighters, and special forces personnel.

Implementation process:

  1. Determine whether the employee requires above normal (extreme) levels of fitness to perform their job
  2. Document the reasons why.
  3. Keep receipts for any fitness expenses incurred – gym fees, training fees, fitness equipment.

The benefits of incorporated associations

An incorporated association is a formal legal structure adopted by a broad range of non-profit organisations. Incorporated associations have the word ‘incorporated’ or the abbreviation ‘Inc’ in their name. Incorporated associations are subject to state or territory incorporation laws and are administered to by a government body within the relevant state and territory. As a consequence, the operations of an incorporated association are restricted to its home state.

Incorporated associations have the following advantages:

  • Suitable for community-based groups.
  • Has an identity distinct from the founders and members.
  • An inexpensive way to give associations a legal identity which continues despite any membership changes.
  • Can operate regardless of changes to its membership.
  • Can accept gifts and donations.
  • Can enter into contracts.
  • Can apply for government grants.

There are several conditions that an organisation wishing to incorporate must meet. These will differ depending on the state/territory in which the organisation seeks to become incorporated.

The significant steps for applying for incorporation are:

  1. Choose a name and check its availability,
  2. Adopt a set of rules which comply with the requirements of the Act. An association can choose to prepare its own rules or adopt the prescribed model rules; and
  3. Lodge an application for incorporation with the required accompanying documentation.

Travel to co-existing work location

Co-existing work locations travel involves travel which can be attributed to the employee having to work in more than one location.

This is the case where:

  • The travel is directly between work locations, or between home and an alternative work location, and
  • It is reasonable to conclude that the travel is undertaken in performing the employee’s work activities because of the requirement to work in more than one location.

Co-existing work locations travel will be tax-deductible where the travel is attributable to the employee having to work in more than one place, rather than a choice of where to live.

If you would like to reduce the amount of tax you are paying, please give us a call. 90% of the time, we can legally reduce your tax liability.