“the question becomes, well, what’s a gym?” says barrett. “…does the gym have to register or something?”
the government of newfoundland announced a physical activity tax credit in 2021, which allows for a tax credit of up to $2,000 per family for the cost of eligible programs that contribute to cardiorespiratory endurance, muscular strength, muscular endurance, flexibility, and/or balance. this includes gym memberships as well as activities like soccer, hockey, golfing, sailing, and boating.
still available in 2022, the province’s 2023/24 proposed budget would
double the fitness tax credit. however, not everyone is convinced these credits result in an increase in physical activity.
not all analysts think fitness tax credits work
the government of canada previously implemented — and then revoked — a fitness tax credit for children, but analysis reveals that the program wasn’t as effective as initially hoped.
federally, the children’s fitness tax credit ran until 2016, allowing families to claim $500 to $1000 per child (the total amount increased over the years). the credit gave parents a 15 per cent break of the amount claimed on their taxes — up to $75-$150.
however, each year no more than 55 per cent of tax-paying parents took advantage of the fitness credit or its sister arts credit,
according to the cbc. it was also far more likely to be used by high-income families, who would arguably be more likely to be able to afford these memberships than lower income families. there was also little proof that the credit influenced families to sign their kids up for classes if they weren’t already participating pre-benefit. instead, it was noted the government may see more impact by directly funding recreational activities, so families could simply show up and participate rather than paying upfront and waiting for a tax credit in april.
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