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

Ruling: Q1: Can the cost of your therapy treatment be included as a medical expense for the purposes of calculating a medical expenses tax offset? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 159(P).

Reasons for decision: Summary: The term 'medical expenses' is defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936), and includes such payments made for therapeutic treatment administered by direction of a legally qualified medical practitioner. In Case R95 (1984) 27 CTBR (NS) 1154; 84 ATC 633, the Tribunal found that 'therapeutic treatment' necessitated the exercise of professional skill in the medical field in some positive way, which would normally involve the person undertaking the act of administering the treatment using chemical agents or drugs or a physical or mental process of one kind or another in a manner that is directed towards the cure or management of disease or of diseased patients. Therapeutic treatment is administered by direction of a legally qualified medical practitioner when the treatment is undergone as part of the medical practitioner's care of the patient. Furthermore, therapeutic treatment as a concept is concerned with healing or curing, rather than preventing the need for therapy (18 TBRD Case T67 ; 14 CTBR (NS) Case 31 ). Although the treatment must be administered by direction of a legally qualified medical practitioner, the treatment need not be administered by such a practitioner. In your case, you were prescribed the therapy by a specialist, and the specific therapist and their professional colleagues at that practice, worked to administer the treatment. Therefore, the therapy is therapeutic treatment administered by a legally qualified medical practitioner and payments for this treatment are eligible for the medical expenses tax offset under section 159P of the ITAA 1936.

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 were referred in writing by your specialist to a particular therapist for a course of treatment. | You have had regular therapy throughout the year as part of this treatment. | On occasion, you have been treated at the same practice for the same condition by different practitioners due to the particular therapist being unavailable temporarily. | Treating practitioners have in all cases worked from the same file and notes, including the regular written correspondence provided by your specialist to the practice with instructions on the treatment, as well as the updates provided back to the specialist by the lead treating therapist.