Private ruling: Medical expenses for the upkeep and maintenance of guide and assistance dogs
Date of advice: 31 May 2019
Published: August 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are the costs for the upkeep and maintenance of a guide and assistance dog considered medical expenses for the purpose of claiming the net medical expenses tax offset? | A1: Yes. Medical expenses are defined in paragraph 159P(4)(i) of the Income Tax Assessment Act 1936 (ITAA 1936) to include payments for the maintenance of a properly trained dog used for the guidance or assistance of a person with a disability. Accordingly, the costs of maintaining an assistance dog are medical expenses that relate to an aid for a person with a disability for the purposes of claiming the net medical expenses tax offset. The net medical expenses tax offset is 20% of the amount by which the net medical expenses exceed the threshold for the relevant income year.

Relevant facts and circumstances: You have two trained and accredited assistance dogs which mitigate the effects of your medical disabilities. Each dog provides unique assistance to you in different situations. Dog 1 is trained to assist you with numerous tasks including waking you from disturbed sleep such as nightmares, deep pressure and post-traumatic stress disorder. Dog 2 is trained to assist you with fetching dropped items, roll you over and fetch the phone if you lose consciousness and to act as a guide dog due to your visual impairment.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 159P(1) | Income Tax Assessment Act 1936 subsection 159P(4)