Fitness coaching income is growing faster than most coaches realise they should be paying tax on it. Whether you offer in-person personal training, online coaching programs, subscription memberships, or group sessions — once you start charging clients, you are running a business in the eyes of the ATO. Many fitness coaches start out treating their income as casual or side income, lodge it incorrectly (or not at all), and end up facing a much larger tax problem down the track. This guide helps you get it right from the start.
Do You Need an ABN?
Yes — if you charge clients directly for your services, operate independently (not as an employee of a gym or studio), or run any kind of online coaching program or digital product, you need an ABN.
The key test is not how much you earn — it is whether you are operating with a profit-making intent and in a systematic way. Even at low income levels, this typically qualifies as a business rather than a hobby.
What Counts as Income?
All of the following must be declared:
Income received in cash is still taxable. The ATO cross-references digital platform data and bank deposits — underreporting cash income is a significant audit risk.
- Personal training sessions (in-person or online)
- Group fitness classes (whether in a gym, park or online)
- Online coaching programs, 6-week challenges, transformation programs
- Monthly subscription memberships on Trainerize, Everfit, Kajabi or similar
- Digital products — workout plans, nutrition guides, e-books
- Revenue from fitness-related social media content
- Equipment hire income
When Must You Register for GST?
Once your annual turnover from all business activities exceeds $75,000, GST registration is compulsory. For fitness coaches with subscription programs and multiple income streams, this threshold is often reached more quickly than expected.
Fitness coaching services are generally subject to GST (unlike some allied health services). Once registered:
- You must add 10% GST to invoices for Australian clients
- You can claim GST credits on business expenses
- You must lodge BAS quarterly or monthly
Online Programs and GST
Many fitness coaches running online programs on international platforms (like Kajabi or Teachable) incorrectly assume their income is GST-free because the platform is overseas.
If the clients are based in Australia, GST obligations may still apply — the platform's location is not the determining factor.
What Expenses Can Fitness Coaches Claim?
The ATO scrutinises deductions for gym memberships and personal fitness equipment very carefully. The test is whether the expense is incurred in producing income — not simply whether it relates to fitness.
- Gym equipment used for client training or content creation
- Fitness and coaching apps, software subscriptions (Trainerize, Everfit, MyFitnessPal Pro)
- Professional liability and personal trainer insurance
- Marketing — social media advertising, website hosting, photography
- Travel between client locations (not home to first client)
- Professional development — PT certifications, CPD, workshops
- Work uniform with a business logo (not general activewear)
- Home office expenses if coaching administration is done at home
- Music streaming used during sessions (business portion)
- Personal gym membership (only deductible if the gym is your primary workplace and you hold a genuine lease)
- General activewear and sports clothing (worn off duty — not deductible)
- Supplements and general nutrition (personal benefit — not deductible)
- General fitness activities you participate in personally
The Most Common Tax Mistakes Fitness Coaches Make
The key points are below:
- Not declaring online program income (especially from international platforms)
- Claiming personal gym membership as a 100% business expense
- Treating cash payments as not taxable
- Failing to register for GST once the $75,000 threshold is reached
- Not lodging tax returns because 'the income is only small'
Should You Set Up a Company?
For most fitness coaches just starting out or earning under $80,000–$100,000 net, a Sole Trader structure is the most practical and cost-effective option.
A company becomes worth considering when:
- Net income consistently exceeds $120,000+
- You are building a multi-coach business or fitness studio
- You want to reinvest profits rather than draw them as personal income
- You are managing significant business risk and want liability separation
General information only
This article provides general tax information only and does not constitute personal tax, legal, or financial advice. Tax rules can change and individual circumstances vary.
If you would like advice based on your situation, please get in touch with the practice.
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