Private ruling: Medical expenses tax offset
Published: April 2014
Ruling period: Year ended 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim your share of eligible medical expenses for the purposes of the medical expenses tax offset? | A1: Yes.

Relevant facts and circumstances: You and your spouse are Australian residents for tax purposes. You and your spouse contribute equally to your joint bank account. You and your spouse have paid for eligible medical expenses from your joint bank account. You and your spouse have out-of-pocket expenses above the relevant claim threshold.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159P | Income Tax Assessment Act 1936 Section 159P(1) | Income Tax Assessment Act 1936 Section 159P(4)

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 the taxpayer pays eligible medical expenses in an income year for themselves or a dependant who is an Australian resident. In your case, you and your spouse have paid eligible expenses. These expenses have been paid from your joint bank account to which you contribute equally. The Commissioner accepts that you have each paid some of the expenses and that you may both claim your share of the expenses you have paid