WHAT CAN YOU CLAIM ON TAX THIS YEAR ?
WITH 2020 / 21 UPDATES
The 2020 / 21 tax year will likely look a little different for many of us . Taking into consideration COVID-19-related changes , small business tax specialist Mark Chapman gives us the lowdown for the fitness industry .
W ith the end of the financial year
rapidly approaching , it won ’ t be long before its time to lodge your income tax return for 2020 / 21 . To get the best possible tax outcome , it ’ s essential that you understand what you can – and what you can ’ t – claim against your taxes , so here ’ s a checklist of the deductions all workers in the fitness industry should be considering claiming this tax year .
Remember , this list isn ’ t exhaustive and not all the deductions will apply to everyone . Similarly , you may be entitled to some deductions that aren ’ t listed here . Make sure you get professional help from a tax agent like H & R Block to ensure that you ’ re getting your return right .
Travel and meals
It ’ s unlikely that you flew this year , though some will have undertaken tax deductible interstate travel . You can ’ t usually claim the cost of the daily commute to and from work . The only exception to that rule is if you have to carry bulky equipment ( such as inflatable exercise balls , or other exercise equipment ) to and from work because there is no secure place of storage for them at your workplace .
You can claim the cost of travelling between two workplaces , such as between two gyms or two personal training appointments . This includes public transport and taxi costs .
If you plan to use your own car for work purposes , you can either claim a set rate of 72 cents per kilometre for all work journeys , or you can claim the actual expenses incurred . If you choose the latter , you ’ ll need to keep receipts for all costs ( including road tolls and parking fees ) and also keep a logbook of all your journeys for a 12-week period .
Just because you ’ re in the fitness or sporting industry , doesn ’ t mean you can claim for the cost of attending sporting events . So , if you ’ re a tennis coach , you can ’ t claim for the cost of tickets to the Australian
Open . If , however , you ’ re coaching one of the players in the Open , you can claim the costs of attending .
When it comes to claiming meals , you can only do so if the expense is incurred due to your being away for work . The same applies to accommodation and incidental expenses .
Work-related clothing
You can claim a deduction for clothing that you ’ re required to wear as a uniform to work that has the logo of the gym , facility or sporting club where you work on it .
Unfortunately , you can ’ t claim a deduction for the cost of purchasing or cleaning a plain uniform or conventional clothing you wear to work , even if your employer tells you to wear them . So , general exercise clothing like tracksuits , shorts , tank tops , running shoes , socks , t-shirts and so on , can ’ t be claimed .
There ’ s good news , though , if you deliver outdoor training sessions , because you can claim the cost of sun protection gear such as sunglasses , hats and sunscreen . Slip , slop , slap , claim .
Buying fitness equipment
There are slightly different tax considerations for smaller and larger purchases .
Smaller purchases
You can claim an immediate deduction for any work equipment that costs less
16 | NETWORK WINTER 2021