Private ruling: Net medical expenses tax offset - dental expenses
Published: September 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are dental expenses such as implants, veneers and bridgework eligible expenses in respect of the net medical expenses tax offset? | A1: Yes

Relevant facts and circumstances: You had major dental work during the 2011-12 financial year including a full implant of crown veneers, removal of existing teeth and bridgework. The work was performed by a professional dentist and an oral and maxillofacial surgeon. None of the dental treatment you received was purely cosmetic in nature. You did not receive any reimbursement for the cost of the dental work.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P

Reasons for decision: Summary: Under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936) a tax offset is available to a resident taxpayer whose net medical expenses paid in the year of income exceed the relevant threshold. Net medical expenses are the medical expenses a taxpayer has paid less any refunds they received, or could have received, from Medicare or a private health fund. In the 2011-12 financial year a taxpayer may claim a tax offset of 20% of the net medical expenses paid in the year of income in excess of the relevant threshold, currently $2,060. Subsection 159P(4) of the ITAA 1936 states that payments made to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth are considered medical expenses eligible for the tax offset, whereas payments made to a dentist for dental services or treatment which are of a purely cosmetic nature are ineligible for the tax offset. In your case you have incurred dental expenses for procedures including teeth removal, crown veneers and bridgework. The treatments were at the direction of a dental specialist and were medical not cosmetic in nature. Therefore your dental expenses are considered to be eligible for the purposes of the medical expenses tax offset.

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