Private ruling: Medical expenses tax offset
Published: January 2012
Ruling period: Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 01 July 2011

Ruling: Q1: Can vitamin, mineral and supplements that form part of your child's treatment program prescribed by a legally qualified medical practitioner, be included in the calculation of a medical expenses tax offset? | A1: Yes. | Q2: Can vitamin, mineral and supplements that form part of your child's treatment program prescribed by allied health providers, be included in the calculation of a medical expenses tax offset? | A2: No.

Relevant facts and circumstances: Your child is receiving treatment for various aspects of a disorder mainly concerning health and behaviour issues from a legally qualified medical practitioner who specialises in that area. On the recommendation of the doctor, your child is also being treated by allied health providers. Each person prescribes a variety of vitamin, mineral and supplements and these are purchased by you directly from them or from a pharmacy.

Relevant legislative provisions: 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. The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $2,000 for the 2010-11 financial year. Medical expenses are defined in subsection 159P(4) of the ITAA 1936. Paragraph (d) of the definition includes payments for therapeutic treatment administered by direction of a legally qualified medical practitioner. Therapeutic treatment as a concept is concerned with healing or curing, rather than preventing the need for therapy ( Case T67 (1967) 18 TBRD 346;(1967) 14 CTBR (NS) Case 31 ). Although the treatment must be administered by direction of a legally qualified medical practitioner, the treatment need not be administered by such a practitioner. The Administrative Appeals Tribunal found in Case R95 84 ATC 633; Case 148 27 CTBR (NS) 1154 that therapeutic treatment necessitated the exercise of professional skill in the medical field. This would normally involve the person administering the treatment using chemical agents or drugs or some physical and mental processes which are directed towards the cure or management of a disease or ailment. It was held in Case A53 69 ATC 313; (1969) 15 CTBR (NS) Case 30 that the mere suggestion or recommendation by a medical practitioner that the patient undergoes therapeutic treatment is not sufficient for the payment to qualify as medical expenses. The patient would have to be referred by a medical practitioner to a particular person for specific treatment. In your case your child is being treated by a legally qualified medical practitioner. The purpose of this treatment is to improve various aspects of your child's disorder mainly health and behaviour. The costs incurred for this therapeutic treatment includes vitamin, mineral and supplements prescribed by the medical practitioner. Your expenditure on these items prescribed by the qualified medical practitioner qualifies as a medical expense under paragraph (d) of the definition of medical expenses. Therefore this expenditure can be included when calculating the medical expenses tax offset. Your child is also being treated by allied health providers and this is at the recommendation of the medical practitioner. The costs incurred for these therapeutic treatments includes prescribed vitamin, mineral and supplements. Your child was not referred by the medical practitioner to a particular person for specific treatment. This treatment is not administered by direction of a legally qualified medical practitioner. Your expenditure on the items that are prescribed by the allied health providers does not qualify as a medical expense under paragraph (d). Therefore this expenditure can not be included when calculating the medical expenses tax offset.

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