Private ruling: Medical expenses tax offset
Published: October 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Do the costs associated with the dental work performed to repair your damaged teeth qualify as eligible medical expenses for the purposes of the medical expenses tax offset? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159(P) | Income Tax Assessment Act 1936 Subsection 159P(1) | 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. For the 2010-11 income year the medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $2,000. Please note that the threshold amount is subject to indexation and will change in future income years. Subsection 159P(4) of the ITAA 1936 defines medical expenses which are eligible for the medical expenses tax offset. Paragraph (b) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 includes payments made to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth. However if the dental service or treatment is solely cosmetic the expense becomes an ineligible medical expense. A cosmetic dental service or treatment is one which beautifies or changes a person's appearance and is designed to effect a superficial alteration while keeping the basis unchanged. In your case, you have had a series dental procedures performed on repair some damaged teeth. It is considered that whilst some of the dental work may be cosmetic the treatment to your teeth is not solely cosmetic. Accordingly you are entitled to include the costs of the dental treatment in the calculation of your 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. | Relevant facts: You had been experiencing sensitivity pain when you ate food that was cold or warm. You also had a sensation that the front and back of your tooth was separating. | Your dentist diagnosed you with worn down enamel. | You have had a series of dental procedures performed over a period of time to repair the damage. | You have provided a copy of the statement of account for the expenses. The account has been paid in full. | The payment was made to a legally qualified dentist. | You do not have private health insurance.