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Expert Panel to Study Potential Adult Fitness Tax Credit
D
uring April’s federal bud- get announcement, the Government of Canada made good on its pledge to in-
troduce an Adult Fitness Tax Credit by announcing that an expert panel would be established to design the credit. Fitness Industry Council of Canada
(FIC) has been advocating for this tax credit since 2007. This included com- missioning an economic report from the Centre for Spatial Economics (CSE), which indicated that the introduction of an Adult Fitness Tax Credit would save the government $625 million in net health care costs over five years. At the time, three of five Canadians sup- ported a tax credit that encouraged physical activity. In 2013, the federal budget office
estimated that an Adult Fitness Tax Credit could cost $268 million over five years. With an Adult Fitness Tax Credit, the CSE report also estimated that the number of physically active
adult Canadians would increase by al- most one million people. “This is great news for the fitness
industry and all Canadians,” says FIC president David Hardy. “We’ve been working for eight years to implement this tax credit, and today we’re seeing light at the end of the tunnel. In addition to encouraging more Canadians to get more active, this initiative will also prevent several chronic diseases, save health care costs and reduce lost work days due to illnesses.” The 2011 federal election platform
stated that an Adult Fitness Tax Credit would be implemented “to support Canadians in choosing a healthy, active lifestyle, [and the government] will establish an Adult Fitness Tax Credit to cover up to $500 in registration fees for fitness activities for adults.” This commitment would help “avoid major chronic health problems and increase overall wellbeing. And there’s a huge range of activities that
“While the tax credit was not announced in the budget, the fact the government has agreed to study the terms under which a tax
credit would be applied is very positive.” ~ David Hardy, FIC president
can help achieve these goals—from hockey at the rec centre to time on the treadmill.” “While the tax credit was not an-
nounced in the budget, the fact the government has agreed to study the terms under which a tax credit would be applied is very positive,” says Hardy. “This is exactly the same strategy the government took before announc- ing the Children's Fitness Tax Credit.” During those hearings, FIC lobbied to include children's gym memberships as an allowable credit. Before then, children's gym memberships were not included because they did not meet the requirement that exercise be supervised. “We believe the government is con-
cerned about what would be covered under an adult fitness tax credit. For example, what about golf member- ships?” says Hardy. “But the fact that it is undertaking a study six months be- fore an election is a positive sign.” “We’re happy that the government
is establishing an expert panel dedicat- ed to developing the scope of the cred- it,” says FIC executive director Trisha Sarker. “FIC’s extensive knowledge and past research on this tax credit make us an ideal candidate for this panel. We hope to be selected to ensure the fitness industry is well represented.”
For more information, visit
www.AdultFitnessTaxCredit.ca.
46 Fitness Business Canada May/June 2015
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