Private ruling: Medical expenses tax offset
Published: July 2012
Ruling period: Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012
Date scheme commenced: 1 July 2008

Ruling: Q1: Can the costs of your home carers be included as a medical expense for the purpose of the medical expenses tax offset? | A1: No

Relevant facts and circumstances: You have been diagnosed with medical condition by your medical practitioner. Your condition continues to deteriorate and you are not able to live independently without supervision. You have employed registered carer's seven days a week who are not registered nurses or legally qualified as medical practitioners. You require supervision in the mornings and evenings for meals, medication, shopping, bathing and other personal needs. You have provided a weekly invoice from your carers and a letter from your doctor. You are not blind and not permanently confined to a wheelchair.

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

Reasons for decision: Summary: A medical expense tax offset is available under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), where you paid for medical expenses in an income year for yourself or a dependant whilst 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) in an income year exceeds the threshold amount. Medical expenses are defined in subsection 159P(4) of the ITAA 1936. Paragraph (a) includes payments to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation and, (h) as remuneration of a person for services rendered by them as an attendant of a person who is legally blind or permanently confined to a bed or an invalid chair. In your case, you suffer from a medical condition and require daily care in the mornings and evenings. You have employed registered carers. Your deteriorating condition requires constant care. However, you do not satisfy the specific criteria defined in paragraph 159P(h) as you are not blind or permanently confined to a bed or invalid chair. Also your carers are not legally qualified medical practitioners or nurses. Therefore, the payments made to your carers do not meet the definition of medical expenses for the purpose of the medical expenses tax offset. Therefore, you are not entitled to a medical expense tax offset in respect of the cost of the carers under section 159P of the ITAA 1936.

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.