Private ruling: Deduction for medical expenses tax offset
Published: October 2013
Ruling period: Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013
Date scheme commenced: 1 July 2010

Ruling: Q1: Are day surgery expenses in relation to in-vitro fertilisation (IVF) procedures for your eligible medical expenses for the purposes of the 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 to a taxpayer under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where the taxpayer pays medical expenses in an income year for themselves or a dependant who is an Australian resident, to the extent that they are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund. For the year ended 30 June 2013, the amount of the tax offset is 20% of the excess of net medical expenses over the threshold of $2,120 where the threshold income is $168,000 or less for a family. The term medical expenses is defined in subsection 159P(4) of the ITAA 1936, and includes payments to a legally qualified medical practitioner, nurse or chemist or a public or private hospital in respect of an illness or operation. Taxation Ruling IT 2359 provides that infertility is an illness within the ordinary meaning of the term and expenses associated with overcoming that illness are medical expenses. In your case, you used the IVF treatment overcome infertility and you made payments to a private hospital in regards to this treatment. Therefore, the unreimbursed expenses you have paid in respect of the IVF procedures qualify as eligible medical expenses under subsection 159(1) of the ITAA 1936, and can be included in the calculation of the medical expenses tax offset.

Relevant facts: You are an Australian resident for income tax purposes. | You have recently had IVF treatment for infertility and your treatment included visits to a private hospital for day surgery in an operating theatre. | You are not a member of a health fund and you paid for all the expenses incurred. | All costs, except for the private hospital operating theatre costs, attracted a Medicare rebate. | You have claimed a medical expenses tax offset on your tax return based on the figures shown on a statement you received from Medicare.