Private ruling: Medical expenses
Published: October 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Is the cost of installing a bidet a medical expense for the purpose of calculating a medical expense tax offset? | A1: No.


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

Reasons for decision: Summary: A medical expenses tax offset is available under section 159P of the Income Tax Assessment Act 1936 , where you incur medical expenses in an income year for yourself or a dependant who is an Australian resident. The medical expense 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 relevant limit. The term 'medical expenses' is defined in subsection 159P(4) of the ITAA 1936 to include payments in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner, and for therapeutic treatment which has been administered by direction of a legally qualified medical practitioner. It also covers payments to doctors, nurses, chemists, dentists, opticians and optometrists, in respect of an illness or operation. Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' as an instrument, apparatus or device which is manufactured as, distributed as, or generally recognised to be an aid to the function or capacity of a person with a disability or an illness. TR 93/34 also stipulates that generally, a household or commercial appliance is not a 'medical or surgical appliance'. The question of whether the appliance is an aid to function or capacity looks at the character of the appliance and not the purpose for which the appliance is prescribed or used. Consequently, the cost of installing a bidet does not qualify for the medical expenses tax offset as it is not considered a medical or surgical appliance and is not a medical expense.

Your doctor provided a letter stating that because of your condition, you require a bidet for your personal hygiene.