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

Ruling: Q1: Are you entitled to include the amounts you paid for medical retrieval, life support equipment and medical gases in the calculation of your medical expenses 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 to a taxpayer under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where the taxpayer incurs 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 definition of a dependant for the purposes of this subsection is provided in subsection 159P(4) of ITAA 1936. Your relative was your dependant for the purposes of section 159P from their arrival in Australia. The medical retrieval team would have consisted of legally qualified medical practitioners and nurses. Subsection 159P(5) of the ITAA 1936 enables payments to an employer of a person who is a legally qualified medical practitioner or nurse in respect of the provision of services or treatment by that person to qualify as medical expenses. Consequently the net payments you made for the retrieval team, the life support equipment and the medical gases in respect of your relative are eligible to be included in your medical expenses tax offset calculation.

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 are an Australian resident for income tax purposes. | Your infant relative became ill while overseas, and was airlifted to Australia for treatment. | You were appointed as their carer, and on arrival in Australia they became an Australian resident and were included on your Medicare card. | Your relative required life support on arrival and this was provided by a NETS medical retrieval team who used life support equipment and medical gases whilst transporting your relative to a hospital. The NETS medical team provides legally qualified medical practitioners and nurses for the transport of ill patients. | You paid for the expenses of the NETS medical team.