Private ruling: Eligibility of medical expense for medical expenses tax offset
Published: August 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Question and Answer: | Do the dental expenses incurred in your spouse having denture implants fitted; qualify as medical expenses for the purpose of the medical expenses tax offset. | Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P. Income Tax Assessment Act 1936 Section 159P(4).

Reasons for decision: Summary: Under section 159P of the Income Tax Assessment Act 1936 a tax offset is available to a resident taxpayer whose net medical expenses paid in the year of income exceed $2,000. Net medical expenses are the medical expenses a taxpayer has paid less any refunds they received, or could have received, from Medicare or a private health fund. A taxpayer may claim a tax offset of 20% of the net medical expenses paid in the year of income in excess of the relevant threshold, currently $2,000. The definition of the term medical expenses includes payments to a legally qualified dentist or dental mechanic for the supply of denture implants. However, if the dental service or treatment is solely cosmetic the expense becomes an ineligible medical expense. In your case you have incurred dental expenses to fit seven denture implants. The invoice provided by you show the procedure was not solely cosmetic in nature. Therefore your dental expenses are considered to be eligible for the purposes of the medical expenses tax offset. Calculating your tax offset To calculate your medical expenses tax offset, you: · Add up all your allowable medical expenses · Deduct all the refunds you have received or are entitled to receive from Medicare or a private health fund · Deduct $2,000 · If this amount is $0 or less, you cannot claim a tax offset · Otherwise, divide the amount by 5 (to get 20%). This amount is your medical expenses tax offset

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: Your spouse used upper dentures for many years and always had problems with ill fitting dentures due to their gums changing over time. | This resulted in them having a reduced capacity to eat and/or enjoy many foods because of the lack of taste and the inability to chew harder foods. | Your spouse was referred by a dentist to a dentist who specialises in denture implants. | The seven denture implants were placed into the upper gum and the new denture for your spouse, when fitted, was attached to these implants. This gave the denture a more solid base and because there was no need for a roof on the denture it restored the full taste sensation when eating, for your spouse. | The payment for the denture implants procedure was made to a legally qualified dental surgeon. | There was no refund from you and your spouse's private health insurance fund as you only have basic dental cover. | You have provided a copy of the invoice for the denture implants procedure.