Private ruling: Medical expenses
Date of advice: 25 August 2015
Published: August 2015
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a medical expenses tax offset for the 2014-15 financial year? | A1: No.


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

Reasons for decision: Summary: A medical expenses tax offset may be available under subsection 159P(1) of the Income Tax Assessment Act 1936 where you pay certain medical expenses in an income year for yourself or a dependant who is an Australian resident, to the extent that you are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund. Under recent changes to the legislation, the medical expenses tax offset is being phased out. To be eligible to claim a medical expenses tax offset in 2014-15, you must have either: • received this offset in your 2012-13 and 2013-14 income tax assessments, or • paid for medical expenses relating to disability aids, attendant care or aged care. In your case you received a medical expenses tax offset in the 2012-13 financial year, however did not receive a medical expenses tax offset in the 2013-14 financial year. Your medical expenses for the 2014-15 financial year did not relate to disability aids, attendant care or aged care. Your specific circumstances are acknowledged, however, the legislation provides no discretion in your situation and does not allow a medical expenses tax offset.

Relevant facts: You previously had a medical condition and claimed a medical expenses tax offset in the 2012-13 financial year. | You did not have extra medical expenses in the 2013-14 financial year and did not claim a medical expenses tax offset in that year. | You were diagnosed with another medical condition during the 2014-15 financial year. You paid over $X,XXX for the initial treatment. The costs were not covered by Medicare. | Your medical expenses did not relate to disability aids, attendant care or aged care.