Private ruling: Medical expenses tax offset
Date of advice: 1 December 2015
Published: February 2016
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a medical expenses tax offset for the 2013-14 or 2014-15 financial years? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P Detailed reasoning | A medical expenses tax offset may be available under subsection 159P(1) of the Income Tax Assessment Act 1936 where you pay certain medical expenses in an income year for yourself or a dependant who is an Australian resident, to the extent that you are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund. Under recent changes to the legislation, the medical expenses tax offset is being phased out. | To be eligible to claim this offset in 2013-14, you must have either: | • received this offset in your 2012-13 income tax assessment, or | • paid for medical expenses relating to disability aids, attendant care or aged care. | To be eligible to claim a medical expenses tax offset in 2014-15, you must have either: | • received this offset in your 2012-13 and 2013-14 income tax assessments, or | • paid for medical expenses relating to disability aids, attendant care or aged care. | In your case you did not receive a medical expenses tax offset in the 2012-13 financial year. Therefore you are not eligible to claim a medical expenses tax offset for the 2013-14 or 2014-15 financial years. | Your personal circumstances are acknowledged, however, the legislation provides no discretion and does not allow a medical expenses tax offset.


Relevant facts: You and your spouse have incurred substantial out of pocket medical expenses in the 2013-14 financial year. | In the 2014-15 financial year, you again incurred out of pocket medical costs. | Your medical expenses did not relate to disability aids, attendant care or aged care.