Private ruling: Medical expenses tax offset
Published: September 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to claim a medical expenses tax offset in respect of the cost of purchase of a stair lift at your residence? | A1: Yes.

Relevant facts and circumstances: You have purchased a stair lift for your parent's mobility in your house. You purchased an accessible house so that your parent could live at home. You have a letter from a doctor to state that this stair lift is essential as they have a significant physical disability. You are eligible for the dependant tax offset.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P

Reasons for decision: Summary: Subsection 159Pof the Income Tax Assessment Act 1936 (ITAA 1936) provides that a tax offset is allowable to a taxpayer whose net medical expenses in the year of income exceed the threshold amount ($2,060 in the 2012 income year). The medical expenses must be paid by the taxpayer in respect of themselves or their dependant. The medical expenses can be for a parent but only if you can claim a dependant tax offset. Paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 includes payments in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner. Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' as being an instrument, apparatus or device which is manufactured, distributed or generally recognised as an aid to the function or capacity of a person with a disability or an illness. TR 93/34 also provides that generally a household or commercial appliance is not a 'medical or surgical appliance' and that we need to look at the character of the appliance not the purpose for which it is proposed or used. The stair lift has been manufactured, is sold specially and is generally recognised as an aid to those people who have impaired mobility. Its character is to aid a mobility impaired person overcome obstacles such as staircases. The purchase and use of the stair lift was recommended for your parent by a legally qualified medical practitioner and your parent uses it as an aid to their mobility to access your home. The stair lift meets the requirements of a medical or surgical appliance. Therefore, as you are eligible to claim the dependant tax offset and the stair lift meets the requirements of a medical or surgical appliance, the cost of purchasing and installing the stair lift is considered a medical expense for calculating the medical expenses tax offset under section 159P of the ITAA 1936.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.