Tax Matters for Accredited Athletics Coaches

The start of a new financial year means it is time to complete your tax return yet again. For eligible coaches, teachers and other fitness professionals there are a number of opportunities to deduct expenses related to your athletics coaching. The best way to ensure that you are getting everything that you are entitled to is to speak to your accountant or a tax professional. To help you get started this article will take a look at who is eligible to apply for a deduction and the kind of expenses that you are able to include.

One of the key factors that will determine your ability to claim tax deductions for athletics coaching related expenses will be whether your coaching is done as a professional or as a hobby. If athletics coaching is part of your employment with an organisation that pays you a wage (e.g. school teachers, Sporting Schools coaches) you will most likely be eligible. For sole traders the distinction is a little more difficult. The Australian Taxation Office offers a guide to help you make the distinction between a hobby and a business for taxation purposes. If you are running a business you can claim for deductions on your business-related expenses.

Who is eligible to claim a tax deduction for Athletics coaching related expenses?

An employee of an organisation who conducts athletics coaching as a part of their employment. The employee can be employed on a full time, part time or a casual basis.

Examples may include:

• A Primary School teacher who teaches athletics during a PE class.

• A Sporting Schools coach who has delivered a program as an employee of Athletics Australia during the financial year.

• A fitness professional employed by a gym who includes a running group as part of their professional services.

• A professional athletics coach employed by a club to deliver coaching sessions to club members.

• A university student employed on a casual basis to deliver athletics sessions at a local Primary school.

• A teacher who maintains their accreditation to be able to teach the Fosbury Flop to their students.

A self-employed athletics coach or fitness professional who is coaching as part of their professional activity. To find out whether you are eligible to apply for tax deductions as a self-employed coach, take this short test on the business.gov.au website.

Examples may include:

• A professional coach running their own business and earning more than $25,000 in a financial year.

• A self-employed Personal Trainer renting a gym, who includes running training as part of their services.

• A running coach who employs staff members to assist their business operation.

Individuals who coach only as a hobby are not eligible to claim tax deductions on athletics coaching related expenses. It is important to note that a hobby-coach is still able to charge for the cost of their work and doesn't have the reporting obligations of professional coaches. If you are unsure whether your coaching is considered a business or a hobby, see your financial advisor.

If eligible, what are some of things you might be able to claim on your tax deduction?

Car Expenses

The Australian Tax Office advises that you can claim deductions for your car expenses for travel from home to work if you carry bulky items that you are required to use and there is no secure area provided to leave them on the site. For example, professional coaches carrying heavy equipment such as Pole Vault poles to locations where there is no storage available should speak to their financial advisor about deducting car expenses for this trip.

Coaches can also claim deductions for car expenses when travelling directly from one work site to the next. For example, a Sporting Schools coach travelling directly from one school to another should keep a record of their travel for tax purposes.

For further information about what expenses you can claim as car expenses click here.

Travel

Travel to work-related conferences, seminars and events can be deducted, provided it is sufficiently relevant to your professional activities. For example, a professional coach travelling to Sydney to manage their athlete at the Australian Athletics Championships may be eligible for deductions. Similarly, a Teacher coaching athletics as part of their role may be eligible to deduct expenses related to attending a coaching seminar to further their education.

Equipment

You can claim an immediate deduction for equipment that you use for your coaching for equipment cheaper than $300. For equipment above $300 you are able to claim a deduction for the decline in value of the product. The Australian Tax Office offers a guide to depreciating assets for equipment such as weights, blocks etc.

Clothing

Coaches who work outdoors are eligible to claim deductions for sun-protective items including sunscreen, sunglasses, hats or other protective headwear.

General fitness clothing cannot be deducted but if you are required to wear a uniform for your professional activities you can claim the cost of the clothing and the cost of laundering your uniform and protective clothing.

Coaching Accreditation Fees

You can claim deductions for subscriptions to trade, business or professional associations. Email Blair Taylor if you require a copy of your receipt for your reaccreditation payment from the financial year.

The advice provided is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.