Private ruling: Medical expenses tax offset
Published: June 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Can the costs of purchasing the item be included as a medical expense for the purpose of calculating the medical expenses tax offset? | A1: Yes

Relevant facts and circumstances: Your spouse was diagnosed with a condition. Your spouse underwent a procedure as a result of the diagnosis and treatment. The item was used in the procedure. The item was not covered by Medicare. Your spouse is your dependent and you will be claiming the medical expenses tax offset in your income tax return.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 159P(1) | Income Tax Assessment Act 1936 paragraph 159P(4)(e) | Income Tax Assessment Act 1936 paragraph 159P(4)(f)

Reasons for decision: Detailed Reasoning - Detailed reasoning: A medical expenses tax offset is available under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) for medical expenses you incur in an income year. The medical expenses tax offset (METO) is only available if the amount of medical expenses, after being reduced by any entitlement to reimbursement from a health fund or government authority such as Medicare, exceeds $2,120 for the year ended 30 June 2013. The tax offset is 20 percent of the amount by which the net medical expenses exceeds $2,120. In your case the cost of the item is accepted as meeting the requirements to be included as a medical expense for the purposes of METO.