Private ruling: Eligibility to claim medical expenses tax offset for facial surgery
Published: December 2011
Ruling period: Year ended 30June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you able to claim a tax offset for the cost of remedial facial surgery? | A1: No.

Relevant facts and circumstances: In 2011 you underwent a medical procedure described as a lower face and neck lift. Over the last couple of years there has been deterioration to this area of your face, in particular sagging giving your face a lop-sided appearance. This has also had other negative effects on your health. The operation was performed in a private hospital by a legally qualified medical practitioner. You were not entitled to a Medicare benefit under Part II of the Health Insurance Act 1973.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 159P. | Income Tax Assessment Act 1936 subsection 159P(4).

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 for certain net medical expenses. Paragraph 159P(4) of the ITAA 1936 defines ineligible medical expenses as payments: (a) to a legally qualified practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service for which a Medicare benefit is payable under Part II of the Health Insurance Act 1973;. Your operation was performed by a legally qualified medical practitioner at a private hospital. In determining whether an operation is cosmetic in nature, the ordinary definition of 'cosmetic' applies. The Macquarie Dictionary 4 th ed (2005) defines 'cosmetic' as, relevantly: 1. serving to beautify; imparting or improving beauty, especially of the complexion. 2. designed to effect a superficial alteration while keeping the basis unchanged… 3. intended for show; superficial." Therefore, a cosmetic operation is one which beautifies or changes a person's appearance. Your operation has been described as a lower face and neck lift and you have said it was performed to improve your appearance by making good the changes to your face that had deteriorated over time following your accident. As your operation was designed to change your appearance, it is considered to be cosmetic. Additionally, you have not received any Medicare benefit in respect of your surgery as the medical procedure does not meet the criteria for a benefit to be paid. Your expenses are ineligible medical expenses because they were for a cosmetic operation which did not attract a Medicare payment. You are unable to include these expenses when calculating your eligibility to a medical expenses tax offset.

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