Private ruling: Medical expense Tax Offset
Published: March 2013
Ruling period: Year ended 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016

Ruling: Q1: Are expenses in relation to your in-vitro fertilisation (IVF) procedures eligible medical expenses for the purposes of the medical expenses tax offset? | A1: Yes

Relevant facts and circumstances: You are an Australian resident for income tax purposes. You are having treatment administered by a legally registered medical practitioner both in Australia and overseas. The treatment is being undertaken at a specialised clinic. You have expenses for various blood tests and other medical testing. The prescribed drugs administered in your treatment are being supplied by Pharmacies All of your expenses were paid by you or your private health fund. You have provided copies of invoices listing all expenses for your treatment.

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 2012, the amount of the tax offset is 20% of the excess of net medical expenses over the threshold of $2,060. 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 made payments to an overseas fertility clinic in regards to treatment for yourself. The procedure was undertaken by a legally qualified medical practitioner and the medication required for the procedure was prescribed. You are using the IVF treatment program to overcome infertility. It is accepted that the IVF treatment you have received overseas is in respect of the long term treatment program of the illness of infertility. The procedure was undertaken and blood tests organised by a legally qualified medical practitioner and medications are purchased from pharmacies. Therefore, the unreimbursed expenses you have paid in respect of the 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. | Detailed Reasoning - Further information: You have requested the Commissioner to provide you with a private ruling for numerous income years. The Commissioner does not rule for indefinite or extended periods due to the possibility of a change to the law or changes to your circumstances. Also a public ruling may issue which affects the private ruling. We have provided a private ruling until the relevant income year. You can request a further ruling after this time if your circumstances change.

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