Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Michael96(Newbie)Newbie
22 July 2024

Can a business claim preventative healthcare treatments (such as ongoing physiotherapy, allied healthcare, ergonomic assessments, etc.) as a tax deduction for the business?


Or are businesses only allowed to claim costs of their employees healthcare after the injury has occurred? (eg. worker's compensation).


What if the ongoing preventative healthcare treatments being paid for by the business are also being used by the owner of the business? Does this become a personal expense and no longer a business expense? (in which it definitely isn't deductible as it would be personal medical expenses).


Any advice is greatly appreciated in this matter.

Kind regards

1,979 views
2 replies
1,979 views
2 replies

Most helpful response

Most helpful reply

PollyATO(Community Support)Community Support
1 Aug 2024

Hey @Michael96,


To answer your question, Business tax deductions may be available for expenses or outgoings you incurred long as they are directly related to earning your assessable income. However an expense is not deductible if it is capital, private or domestic in nature.

 

A personal medical expense will generally be considered private in nature and therefore will generally not be an allowable deduction. However an employer may be able to claim a tax deduction for medical expenses where it’s incurred in connection with the employee’s employment. 

 

The benefit may be exempt from fringe benefits tax (FBT) if it is in connection with work-related preventative health care of the employee, that is it must be provided in order to prevent an employee from suffering work-related trauma. Whether the preventative health care you are proposing to provide is related to the employment of the employee will depend on your specific circumstances.

 

To obtain an answer specific to your circumstances, you can Apply for a private ruling.

All replies

Most helpful reply

PollyATO(Community Support)Community Support
1 Aug 2024

Hey @Michael96,


To answer your question, Business tax deductions may be available for expenses or outgoings you incurred long as they are directly related to earning your assessable income. However an expense is not deductible if it is capital, private or domestic in nature.

 

A personal medical expense will generally be considered private in nature and therefore will generally not be an allowable deduction. However an employer may be able to claim a tax deduction for medical expenses where it’s incurred in connection with the employee’s employment. 

 

The benefit may be exempt from fringe benefits tax (FBT) if it is in connection with work-related preventative health care of the employee, that is it must be provided in order to prevent an employee from suffering work-related trauma. Whether the preventative health care you are proposing to provide is related to the employment of the employee will depend on your specific circumstances.

 

To obtain an answer specific to your circumstances, you can Apply for a private ruling.

Featured articles

Compare your small business performance with industry benchmarks

7 Apr 2026 · 2 min read time

Tax tips for social media influencers and content creators

22 Apr 2024 · 3 min read time

Working for a food delivery app

15 Apr 2026 · 4 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    327 likes

  2. PayrollDeanne

    (Taxicorn)

    318 likes

  3. Bruce4Tax

    (Taxicorn)

    192 likes

  4. YellowPotato

    (Taxicorn)

    145 likes

  5. Peter_Clyne

    (Superuser)

    101 likes

Top contributors

  1. PayrollDeanne

    (Taxicorn)

    1328contributions

  2. Taxduck

    (Taxicorn)

    1311contributions

  3. YellowPotato

    (Taxicorn)

    580contributions

  4. Bruce4Tax

    (Taxicorn)

    526contributions

  5. YEP

    (Devotee)

    280contributions

Loading
Can a business claim preventative healthcare treatments (eg. physiotherapy) as a deduction? | ATO Community