Private ruling: Net medical expenses tax offset
Date of advice: 12 February 2016
Published: April 2016
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you eligible to claim the net medical expenses tax offset for the relevant years? | A1: No.

Relevant facts and circumstances: Your spouse claimed the medical expenses for you and your children in their income tax return for the year ended 30 June 20XX. You separated from your spouse. You have the children in your care on a full time basis. You did not claim the medical expenses tax offset in your income tax return for the year ended 30 June 20XX.


Reasons for decision: Summary: A medical expenses tax offset is available to a taxpayer under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), where the taxpayer pays medical expenses for themselves or a dependant who is an Australian resident. 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, you can only claim 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. To be eligible to claim the offset in 2014-15, you need to have received the offset in your 2013-14 income tax assessment. 2014-15 is the final year you can claim unless you have medical expenses relating to disability aids, attendant care or aged care - in this case, you can claim the tax offset for these expenses up to the 2018-19 income tax year. The net medical expenses tax offset is being phased out as of 1 July 2013. In your case, you did not receive the net medical expenses tax offset in your 20XX-XX and therefore you will not be eligible to claim the offset in relevant years.

Relevant legislative provision: Income Tax Assessment Act 1936 section 159P