Private ruling: Medical expenses tax offset
Published: May 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Is the cost of treatment overseas a medical expense 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 subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where you pay 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. The definition of "medical expenses" in subsection 159P(4) of the ITAA 1936 includes payments to a legally qualified medical practitioner or a public or private hospital in respect of an illness or an operation. While it is necessary that a taxpayer must be a resident of Australia to qualify for the tax offset, it is not necessary that the payments be made to a resident of Australia or that they are paid in Australia. Your spouse has a medical condition for which they will be receiving treatment overseas performed in a hospital by a legally qualified medical practitioner. The expense therefore qualifies as a medical expense for the purpose of claiming the medical expenses tax offset.

Relevant facts: Your spouse is an Australian resident who has been diagnosed with a chronic medical condition. | Treatment for the condition is not available in Australia. | Your spouse will travel overseas to receive the treatment in the 2014-05 financial year. | The treatment will be provided by a legally qualified medical practitioner in a hospital.