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

Ruling: Q1: Is the cost of surgery to your spouse's an eligible medical expense? | A1: Yes.


Relevant legislative provisions: 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. Medical expenses are defined in subsection 159P(4) 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 (paragraph (a) of the definition). Ineligible medical expenses are defined in subsection 159P(4) of the ITAA 1936 to include payments in respect of an operation that is solely cosmetic (paragraph (a) of the definition). In your case, your spouse's operation was a service carried out by a doctor. It was done to fix a serious medical problem and was not for cosmetic reasons. It is considered to be an eligible medical expense. Therefore you can include the net expense in a calculation for a medical expenses tax offset.

Relevant facts: Your spouse underwent surgery. | There were significant health issues for your spouse following the rupture of an implant. Tests showed an inflammatory reaction. | The procedure was carried out overseas by a medical doctor.