Private ruling: Tax offset medical expenses - travel
Published: September 2011
Ruling period: Year ending 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a medical expenses tax offset for the cost of a flight from overseas to Australia for medical treatment? | A1: No

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You went overseas for a holiday. Whilst there, you suffered an injury which required urgent medical treatment. You travelled on a plane from overseas to a hospital in Australia for medical treatment.

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 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 the 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 $2000 for the 2010-11 income year. The term medical expenses is defined at subsection 159P(4) of the ITAA 1936 for the purposes of the medical expenses tax offset to cover payments to doctors, nurses, chemists, dentists, opticians and optometrists. It also covers payments for therapeutic treatment, medical or surgical appliances, the maintenance of a trained guide dog and remuneration paid to an attendant of an invalid or blind person. Expenses incidental to obtaining medical treatment, such as travel expenses incurred in travelling to a place where medical treatment is available, are not medical expenses as defined in subsection 159P(4) of the ITAA 1936 and do not qualify for the tax offset. Therefore, the cost of the flight from overseas to Australia to obtain medical treatment is not a medical expense for the purposes of 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.