Private ruling: Medical expenses tax offset
Published: August 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Question and answer | Can you include the costs associated with your medical procedure when calculating your medical expenses tax offset? | No.

Relevant facts and circumstances: You underwent a medical procedure. Medicare did not pay a benefit for this procedure as they deemed it to be cosmetic in nature.

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

Reasons for decision: Summary: A medical expenses tax offset is available to a taxpayer under section 159P 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. In regards to what expenses constitute eligible medical expenses, section 159P of the ITAA 1936 expressly excludes cosmetic surgery expenses for which a Medicare benefit is not payable. In your case, you underwent a medical procedure. Medicare did not pay a benefit for this procedure as they deemed it to be cosmetic in nature. As cosmetic surgery expenses for which a Medicare benefit is not payable is specifically excluded from being an eligible medical expense for the purposes of the medical expenses tax offset, you cannot include any of the costs associated with the procedure when calculating your medical expenses tax offset for the year ended 30 June 2012.

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