Private ruling: Tax Offset - Medical expenses
Published: October 2011
Ruling period: Year ended 30 June 2011 | Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2010

Ruling: Q1: Can vitamin, mineral and herbal supplements that form part of your treatment program administered under the direction of a legally qualified medical practitioner, be included in the calculation of a medical expenses tax offset? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 159P(1). | Income Tax Assessment Act 1936 Subsection 159P(4).

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. The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $2,000 for the 2010-11 financial year. Medical expenses are defined in subsection 159P(4) of the ITAA 1936. Paragraph (d) of the definition includes payments for therapeutic treatment administered by direction of a legally qualified medical practitioner. Although the treatment must be administered by direction of a legally qualified medical practitioner, the treatment need not be administered by such a practitioner. The Administrative Appeals Tribunal found in Case R95 84 ATC 633; Case 148 27 CTBR (NS) 1154 that therapeutic treatment necessitated the exercise of professional skill in the medical field. This would normally involve the person administering the treatment using chemical agents or drugs or some physical and mental processes which are directed towards the cure or management of a disease or ailment. In your case you are undergoing a treatment program for your illness that is being administered under the direction of a legally qualified medical practitioner. The costs incurred for this therapeutic treatment includes prescribed vitamin, mineral and herbal supplements. Your expenditure on these items qualifies as a medical expense under paragraph (d) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936. Therefore this expenditure can be included when calculating the medical expenses tax offset.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are: | · the application for private ruling, | · copies of tax invoices and | · your treatment schedule. | You have suffered from an illness for some time, and are being treated by your doctor, a legally qualified medical practitioner. | Your doctor's treatment program for you includes the use of vitamin, mineral and herbal supplements. | Your doctor also referred you to a specialist clinic which added some additional vitamin, mineral and herbal supplements to your treatment program. Your doctor and the clinic collaborate in the management of your treatment program.