The ATO has just released statistics on work related expense claims during last year.
Sweat Smart: A Guide to Tax Deductions for Fitness Instructors and Personal Trainers
Australia is a nation known for its love of sports and fitness. From personal trainers and gym owners to sports coaches and athletes, professionals in the fitness and sporting industry play a vital role in keeping Australians healthy and active. But did you know that there are specific tax benefits available to those in this industry?
The first step to maximising your tax benefits is identifying the expenses you can deduct. For personal trainers and fitness instructors, the following are common deductible expenses:
- Fitness Equipment and Gear: The cost of purchasing and maintaining fitness equipment and attire necessary for your work can be claimed as deductions. This includes dumbbells, resistance bands, yoga mats, fitness clothing, and running shoes.
- Gym Memberships: If you maintain a gym membership for professional development or as a requirement for your job, you can deduct these expenses. However, personal gym memberships for personal use are not eligible.
- Continuing Education: Attending workshops, conferences, or courses related to fitness instruction can be considered a legitimate business expense.
- Insurance Premiums: Premiums for professional liability insurance, which is essential for personal trainers, are fully deductible.
- Marketing and Advertising Costs: Expenses related to promoting your fitness services, such as flyers, business cards, and online advertising, can be deducted.
- Travel Expenses: If you travel to clients' homes or multiple gym locations, you can claim expenses for fuel, public transportation, and vehicle maintenance.
Home Office Deductions
If you have a designated space in your home used exclusively for your fitness business, you may be eligible for home office deductions. This can include a portion of your rent or mortgage, utilities, and even depreciation on your home office equipment.
If you use your vehicle for business-related travel, you can claim deductions for vehicle expenses. This includes fuel, maintenance, and depreciation. Be sure to keep detailed records of your mileage and expenses to accurately calculate these deductions.
Superannuation (Retirement Savings)
As a self-employed personal trainer or fitness instructor, you are responsible for your own retirement savings. Contributions to your superannuation fund can be tax-deductible, helping you secure your financial future while reducing your taxable income.
Depreciation of Assets
You can depreciate the cost of business assets like fitness equipment over time. This allows you to spread the deduction over several years, rather than claiming the entire cost in one tax year.
Uniform and Clothing Expenses
While everyday clothing is generally not tax-deductible, if you wear specialised fitness attire with your business logo, it can be considered a legitimate expense. Keep records of these purchases, and they can help reduce your taxable income.
Professional Memberships and Subscriptions
If you belong to professional organisations or subscribe to fitness-related magazines or journals, the associated fees and subscription costs can be claimed as deductions.
Understanding and making the most of tax deductions is essential for personal trainers and fitness instructors. By keeping meticulous records of your expenses and seeking professional tax advice, you can maximise your deductions, reduce your tax liability, and keep more of your hard-earned money. Don't leave money on the table – make sure you take advantage of these tax deductions to boost your financial fitness.
This blog has been prepared for the purposes of general information and guidance only. It should not be used for specific advice or used for formulating decisions under any circumstances. If you would like specific advice about your own personal circumstances, please feel free to contact us on 02 9411 5422. We can help make sure the right method is used to give you the maximum possible tax deduction associated with any of these methods.