Private ruling: Medical expenses tax offset
Published: July 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Is the cost of a wig and eyelashes a medical expense for the purpose of calculating a medical expense tax offset? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P

Reasons for decision: Summary: A medical expenses tax offset is available under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), where you incur medical expenses in an income year for yourself or a dependant who is an Australian resident. The medical expense tax offset is only available if the amount of medical expenses (reduced by any entitlement to reimbursement from a health fund or government authority) exceeds the relevant threshold. The medical expenses tax offset is 20% of the amount by which the net medical expenses exceeds the relevant threshold. Paragraph 159P(4)(f) of the ITAA 1936 provides the definition of 'medical expenses' and includes payments in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner. Taxation Ruling TR 93/34 explains the meaning of a medical or surgical appliance as an instrument, apparatus or device which is manufactured as, distributed as, or generally recognised to be an aid to the function or capacity of a person with a disability or illness. Paragraph 4 states that an appliance is an aid to function or capacity if it helps the person with the disability or illness to perform the activities of daily living. The definition of medical or surgical appliance includes: Medical or surgical wigs for use by a person which is necessitated by loss of hair through sickness or disease (other than naturally occurring baldness) or the effects of the treatment of sickness or disease. Medical or surgical wigs which are custom made would qualify as a medical or surgical appliance. Therefore, the cost for the purchase of your wig and eye lashes constitutes a medical expense and you are entitled to include the cost in a calculation for a 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. | Because of the condition, your doctor advised you to obtain a custom made wig and eyelashes. | You were measured and a wig and eyelashes were custom made for you.