Tax break for fitness a good idea

New Zealand should look at how Australia is considering a tax break for gym membership, says Les Mills New Zealand CEO Reece Zondag.

Supporting people to become more active is an obvious thing for any country to do. However, New Zealand may need to take a different approach given its different tax structure to Australia.

Zondag says one approach would be for the New Zealand government to support businesses in providing health and fitness benefits for their staff, such as gym memberships.

"With fringe benefit tax on gym memberships paid for by employers up to 64%, it's an active deterrent for many companies." says Zondag.

However membership on its own is not the ideal metric - attendance to the gym is the thing employers should look at.

"I know of some companies who do contribute to the employee's membership, however the contribution can only be accessed if minimum attendance levels are reached" says Zondag. "Almost any gym in New Zealand could supply attendance records to employers if requested to do so".

He says Kiwis seem to be continuing to value their personal health and fitness despite recessionary times. And equally businesses recognise that healthier employees mean less sick days and increased productivity. Put very simply 'Fit people cost less to run'.

Australia's Preventative Health Task Force has recommended Australians should get tax breaks if they can show they are attending exercise classes. The recommendation is one of a number aimed at promoting good health and wellbeing.

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