Private ruling: Medical expenses
Date of advice: 17 January 2019
Published: May 2019
Ruling period: Year ended 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Can the expenses for prosthetic implants be included in the calculation of your Net Medical Expenses Tax Offset? | A1: Yes | Q2: Can the expenses for surgeon fees, anaesthetist and hospital fees related to the prosthetic implants be included in the calculation of your Net Medical Expenses Tax Offset? | A2: No

Relevant facts and circumstances: You lost your limbs below your knees in a workplace accident. You undertook extensive medical treatment for prosthetic artificial limbs. You incurred and paid the costs of the prosthetic limbs and other fees.

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

Reasons for decision: Summary: Subsection 159P(1B) of the Income Tax Assessment Act 1936 (ITAA 1936) states that: For the 2013-14 to 2018-19 years of income, an amount that would otherwise be paid as medical expenses is treated as not being paid as medical expenses unless the payment: (a) relates to an aid for a person with a disability; or (b) relates to services rendered by a person as an attendant of a person with a disability; or (c) relates to care provided by an approved provider (within the meaning of the Aged Care Act 1997 ) of a person who: (i) is approved as a care recipient under that Act; or (ii) is a continuing care recipient within the meaning of that Act. Disability aids are items of property manufactured as, distributed as, or generally recognised to be, an aid to the function or capacity of a person with a disability but, generally will not include ordinary household or commercial appliances. Artificial limbs are a disability aid and can be claimed; however the cost of the surgery does not fall under the definition of an aid for a person with a disability or any of the other categories and is not included in the calculation of your Net Medical Expenses Tax Offset.