Can you claim a bike as a tax deduction

For employee who requires to keep a level of fitness for their workplace - ie: policing
If a mountain bike is purchased to undertake this fitness, would that bike be tax deductable

 

Don't push it - cyclists get fbt-free parking in the car park, showers/end of ride facilities, their own lane (in our dreams) etc.

 

personal expense.

 

No it is a personal and not a expense incurred in production of assessable income. If a employer provides it a residual fringe benefit may arise.

A special forces (navy clearance diver, SAS, Commado ONLY) may be eligible to claim the depreciation as a tax deduction. There extereme fitness requirements are the SOLE instance when the ATO permit such deductions.

 

cheers
thought it might be a long bow

 

Look at TD 93/114 - depending on the job you can claim it.

A police academy PT instructor regularly attends a commercially operated gymnasium to ensure he is in peak condition to perform his duties. The officer claims gym fees, the cost of special protective aerobic shoes and the cost of a track suit. As the officer's ordinary duties require regular strenuous physical activity, a deduction would be available for gym fees and the cost of the special protective aerobic shoes. A deduction is not allowable for the cost of the track suit because it is conventional clothing and the expense is private in nature.

 

Take care with reading too much into this old ruling v's more current rulings. I have seen a few police declined deductions when they are just doing ordinary and not very high performance duties. The high performance physical requirements are not easily met. One client was even a trainer at the academy. Unarmed combat etc.. ATO argued the level of fitness was not a specific requirement of the employment but would have been desirable but was not tested or measured by the employer for the role where the physical combat experience was. They checked with the academy then disallowed the fitness stuff and allowed only the private martial arts costs.

The views on what is required are better described as :

Expenses you incur in maintaining this standard of fitness (fitness courses, gymnasium memberships and other health-related items) are generally private in nature so you can't claim a deduction for these.

Some Defence Force members are required to maintain a very high level of fitness well above the general Australian Defence Force standard. These members derive their income by performing a range of duties designed to keep them physically and mentally prepared. This may include physical training instructors and those in special combat squads.

If you can demonstrate that your job requires the maintenance of a very high level of fitness you may be able to claim a deduction. The strenuous physical activity must be an essential and regular element of your duties.

 

I have previously claimed a bike when working as a professional strength and conditioning coach. I needed to ride with the players during their rehab. Accountant put it through and there were no issues.

 

I would agree. Thats a business use asset however (provided the players had paid you !!) and provided any private use (if any) is adjusted the balance could be written off. The tests of use are easier for business use.

 

1. You could claim it as a work-related expense if you bought the bicycle specifically for work. You might have a job outdoors that requires you to get around and a bicycle is the best way to do it. Assuming your employer hasn’t provided one, then a bicycle could be a great tool to get the job done. There was a private ruling issued where a teacher required one to deliver rider training to school kids and the cost of this bike (left at work) was held to be deductible as a work-related expense. Makes sense.
2. Or you could claim it as a travel expenses. This could work if you were using the bike to get between jobs or visiting clients. The idea here is that you’re doing it rather than catching a taxi or some other form of public transport for travel that is deductible under the usual travel deduction rules.

TAX DEDUCTION FOR A BICYCLE

How about E-Bikes

New Tax Deductible Bike Scheme Set to Boost Dealer Sales

In Australia there are all sorts of generous tax deductions available for leasing and operating a motor vehicle, so why not bicycles?
Until now there has not been any tax advantaged option for Australia’s bicycle consumers, retailers and wholesalers to benefit from.

E-stralian is a new Melbourne based start-up company that plans to change this. Unfortunately this will only be possible for ebikes to start with, thanks to a key piece of wording in our tax legislation, but as we will discuss further at the end of this article, it will create in important precedent to push for non-electric bikes to be included in the future.

At the core of the tax advantaged system is the ‘novated lease’. This is a three-way agreement between the employer, employee and a lease management company, in this case, E-stralian.

The employee chooses an ebike, the employer pays the leasing company and then deducts lease payments from the employee’s pre-tax income. The leasing company buys the ebike.

 

You forgot to include no CTP. Tch, tch.

 

Cycling Tech Paraphernalia ?

 

A bike is a bike. Doesnt matter if its nuclear powered or old school pennyfarthing. This company just looking for a way to sell a $10K toy. Since its not a car the FBT would be 100% taxable v's cars which can use the statutory method. The employee would NOT have the lease payments deducted from salary. 100% private use ? The employer would likely reduce salary by a higher amount to offset the FBT cost. A reportable fringe benefit too so its affects other tax issues too.

Tip : Dont let a salesman try to use the tax system to sell a product.

 

Downside : No additional sick leave when they get cleaned up by the 401 bus.

 

Would be nice - I've sunk just under $10k on MTB related costs in the last 12 months. Worth every cent though

Cheers

Jamie

 

IIRC, the City of Sydney, and some other councils, encourage the use of bicycles for short trips around the city to attend meetings rather than cars (they have a few electric & hybrids) or taxis. So usage is not 100% private and may be able to be justified. IMHO, there should be no incentive for the use of a motor vehicle which isn't also applied to other modes of transport including bus/train/bike - ie either no deduction for MV or deductions for everyone.

 

Only $10k? Has your wife got a foot on your neck or something?

pinkboy

 

So if the employer provides it its a exempt benefit when used only for work purposes just like a pool car or a direct transport expense. But if the employee provides own bike how do you determine a "cost"" and apportion private and work use ? It like the problem with motorbikes being used for work. They arent a car either. Or to be silly a skateboard or rollerblades.

No cents per km method so it comes down to a process akin to logbook BUT it isnt covered by logbook rules so a full year record of use is to be maintained. Perhaps a year, perhaps a shorter period ?

Tax law hasnt (and likely wont for a bit) keep up with this. There isnt even a cents per KM rate for a EV yet. Or a cost per hr to operate the Commissioner accepts based on charge cost + ownership cost.

 

In news feed

 

Would be great if we had a similar scheme to the UK..

Cyclescheme | The UK's Most Popular Cycle to Work Benefit - Cyclescheme

Tax break on cycling gear that is very popular. Get more people active and save millions on the other end on medical bills for unhealthy lifestyles.