Private ruling: Medical expenses tax offset
Published: September 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Can the costs associated with fertility treatment be included as a medical expense for the purpose of calculating a medical expenses tax offset? | A1: Yes.

Relevant facts and circumstances: You suffered from infertility. The only way that you can conceive is through fertility treatment. You were referred by your GP. You incurred all of the expenses.

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

Reasons for decision: Summary: A medical expenses tax offset is available to a taxpayer under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936), where the taxpayer pays medical expenses in an income year for themselves or a dependant who is an Australian resident, to the extent that they are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund. Medical expenses are defined in paragraph 159P(4)(a) of the ITAA 1936 to include payments to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital in respect of an illness or operation. Taxation Ruling IT 2359 states that infertility is an illness within the ordinary meaning of the term and payments to a legally qualified medical practitioner or hospital for treatment under an IVF program qualify as medical expenses. In your case, you incurred expenses related to fertility treatment as part. The cost of obtaining the treatment is considered to be a cost to overcome infertility as these procedures were performed by legally qualified medical practitioners. Therefore, you are entitled to include these expenses as a medical expense for the purpose of calculating a medical expenses tax offset.