Private ruling: Deduction for hearing aids
Published: June 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the cost of hearing aids? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 40-25

Reasons for decision: Detailed Reasoning - Detailed reasoning: Section 40-25 of the Income Tax Assessment Act 1997 allows a deduction for the decline in value (depreciation) of a depreciating asset to the extent to which it is incurred in gaining or producing assessable income. Generally medical expenses have no direct connection to the gaining or producing of assessable income as the purpose of the expense is to return you to health. The expense relates to a personal medical condition and is private in nature. There is insufficient connection to the gaining or production of assessable income for a deduction to be allowed as the expenditure is too remote. Taxation Ruling IT 2217 addresses income tax deductions for medical appliances. It refers to the decision in Case P31 82 ATC 141; Case 96 26 CTBR (NS) 715 where it was found that the sole purpose of a hearing aid was to aid the taxpayer in overcoming a personal disability in order to earn assessable income. The court held that although the taxpayer might be unable to earn the assessable income without the aid of a hearing aid, the outlay was not incurred in gaining assessable income but rather was incurred to help overcome an unfortunate disability suffered by the taxpayer. In your case, you gain your income from activities as an employee. You suffer from a hearing loss and have purchased hearing aids. While we accept that you may need good hearing for your job, the expense is not considered to be incurred in gaining your assessable income, but rather incurred in overcoming a medical condition. Therefore, you cannot claim a deduction for the decline in value of a hearing aid as it does not relate to the earning of your assessable income.

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: You are an Australian resident. | You suffer from hearing loss. | You have difficulty hearing people when they speak which causes embarrassment for you and the people when you repeatedly ask them to repeat what they have said. | Because of your job, not hearing people may also be dangerous when undertaking their work.