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

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 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 treatment does 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.

Relevant facts: You claimed a medical expenses tax offset in the 2011-12 financial year. | You did not claim a medical expenses tax offset in the 2012-13 financial year as your medical expenses were under the relevant threshold. | You have paid medical expenses for treatment for yourself during the 2013-14 financial year. These medical expenses did not relate to a disability aid, attendant care or aged care.