Private ruling: Medical expenses tax offset
Published: July 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are the costs of major dental work considered to be medical expenses for the purpose of claiming a medical expenses tax offset? | A1: Yes.


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 under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), where you pay medical expenses in an income year for yourself and/or a dependant who is an Australian resident. The medical expenses tax offset is only available if the amount of medical expenses (reduced by any entitlement to reimbursement from a health fund or government authority) exceeds the annual threshold. The tax offset is a percentage of the amount by which the net medical expenses exceeds the relevant annual threshold. The definition of "medical expenses" in sub-section 159P(4) of the ITAA 1936 includes payments to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth. Paragraph 159P(4) of the ITAA 1936 defines 'ineligible medical expenses' to include payments for dental services that is solely cosmetic. In this case, it is considered that the major dental treatment you have received is not cosmetic. Therefore, the cost of the treatment is considered to be a medical expense for the purpose of claiming a medical expenses tax offset.

Relevant facts: As the result of a physical assault in which you sustained an injury, you lost some teeth and your remaining teeth became misaligned. Your dentist undertook major dental work to realign your teeth to assist you to be able to eat better. | You claimed a medical expenses tax offset in the relevant financial year.