Tax Return:: Tax Deduction: Personal Grooming, Health and Fitness
Hello, this is your tax accountant, P&C Tax Professionals.
Many of you may be wondering if your personal grooming, health, and fitness expenses are tax deductible on your tax return. Well without further ado, let’s find out in this blog post!
Compulsory medical assessments
What you can claim:
You have the option to claim a deduction for mandatory assessments and medical examinations that your current employer requires you to take as part of your current employment. E.g., if you work as a driver, you can claim the expenses incurred from your compulsory fitness to drive assessment.
Starting from 1 July 2021, you can also claim a deduction for the COVID-19 test that is required in order for you to attend work.
What you can’t claim:
On the other hand, you cannot claim a deduction for any mandatory pre-employment assessments and medical examinations that are conducted for the purpose of securing your employment, see example below:
Example: pre-employment compulsory assessment
In the case of Connor, who is undergoing an interview for a new role as a train driver, he receives a job offer contingent upon completing a pre-employment medical assessment and submitting the resulting medical report to his prospective employer. The assessment and report incur a cost of $150 for Connor.
However, Connor is unable to seek a deduction for these assessments and report expenses because it is a necessary requirement for him to undergo this assessment to secure his employment as a train driver.
Flu and other vaccinations
You cannot claim a deduction for the expenses related to vaccinations, even if your employer requires you to have them done. Such costs are considered private expenses. See example below:
Example: flu vaccination
Judith, a personal carer dealing with medically vulnerable clients, is obligated by her employer to receive the annual flu vaccination.
Despite this being a job requirement, Judith is unable to seek a deduction for the expense associated with her flu vaccination, as vaccinations, including the flu shot, are considered personal expenditures.
Personal appearance and grooming
Typically, expenses for personal grooming and cosmetic items are not eligible for deduction.
What you can’t claim:
Expenditures on personal appearance, such as cosmetics, makeup, skincare, shaving products, haircuts, hairdressing, and hair products, are considered private and are not deductible.
This holds true even if your employer requires you to adhere to specific grooming standards or provides an allowance for your grooming expenses.
What you can claim:
Under limited circumstances, there might be a sufficient link between your personal appearance expenses and the generation of your employment income, allowing for the possibility of deducting such expenditures.
Example: performer’s hairdressing and makeup expenses
Tom is engaged in a touring production lasting six months, where his role requires him to maintain a short buzz cut and use makeup to age his appearance by 20 years. Since the expenses for makeup and hairdressing are directly related to earning his employment income, Tom is eligible to claim a deduction for these costs.
Cosmetics containing sun protection
Certain creams and cosmetics may serve dual purposes, acting as both sun protection and cosmetics. However, if the primary intent or marketing of the product is cosmetic, it typically won't be considered a sun protection item.
Deductibility for the cost of a product with sun protection is contingent upon the following:
> your work heavily exposes you to the effects of the sun as you carry out your duties outdoors for a prolonged period
> you wear sunscreen while you are at work to mitigate such sun-related risks
Gym fees and fitness-related expenses
With limited exceptions, expenses related to gym memberships and fitness equipment, such as skipping ropes and weights, are considered personal and non-deductible. Even if maintaining your employment requires passing medical exams and fitness tests, you cannot claim a deduction for these costs.
Members of the regular Australian Defence Force, police officers, and firefighters are also unable to claim deductions for their fitness expenses. However, in extremely limited situations where an exceptionally high level of fitness is a fundamental and regular aspect of your job, you may be eligible for a deduction.
It is important to note that conventional fitness clothing, including items like tracksuits, running or aerobic shoes, socks, T-shirts, and shorts, cannot be claimed as deductions regardless of whatever situation you may be in.
Example: Combination of deductible expense and private expense
Larry, who serves as an instructor at the police academy specialises in physical training. He consistently visits a commercial gym to maintain his fitness levels for work. Larry’s annual fitness-related expenditures include gym membership fees and the purchase of a tracksuit.
Given that Larry’s regular responsibilities involve demanding physical activity, he is allowed to claim a deduction for his gym fees, but the expense of the tracksuit, which is considered regular attire, falls into the category of personal expenditure and is not deductible.
I hope today’s blog post has been useful in gaining a better understanding of the tax deductions you are and are not able to include on your tax return. If you have any other questions or need help with managing your tax affairs, please feel free to reach out to us via our official Facebook Page (P&C Tax Professionals – Australia) or simply send us an email to pnctax@naver.com.
Thank you and bye for now!