Private ruling: Medical expenses tax offset
Published: February 2015
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a medical expenses tax offset for the 2013-14 financial year? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 159P Detailed reasoning | A medical expenses tax offset is available under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where you pay certain 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. Under recent changes to the legislation, the medical expenses tax offset is being phased out. | To be eligible to claim this offset in 2013-14, you must have either: | • received this offset in your 2012-13 income tax assessment, or | • paid for medical expenses relating to disability aids, attendant care or aged care. | If you received this offset in your 2012-13 income tax assessment, there is no change to the types of net medical expenses that you can claim. | If you did not receive this offset in your 2012-13 income tax assessment, you can only claim net medical expenses relating to disability aids, attendant care or aged care. | Application to your circumstances | You did not receive a medical expenses tax offset in your 2012-13 income tax assessment. Consequently, for 2013-14 you can only claim net medical expenses relating to disability aids, attendant care or aged care. Your medical expenses do not relate to a disability aid, attendant care or aged care. Therefore you are not entitled to a medical expenses tax offset for the 2013-14 financial year. | Your specific circumstances are acknowledged, however, the legislation provides no discretion and does not allow a medical expenses tax offset in your circumstances.


Relevant facts: You and your spouse had medical expenses in the 2012-13 financial year. The majority of the expenses related to you. The net medical expenses tax offset was claimed in your spouse's tax return. | During the 2013-14 financial year you and your spouse separated. | In the 2013-14 financial year you incurred a significant amount of medical expenses. | You did not make a payment relating to a disability aid, attendant care or aged care.