When your net medical expenses for the year exceed a certain threshold, you can claim a tax offset. However, these expenses do not include:
- cosmetic operations for which a Medicare benefit is not payable, and
- dental services and treatment which is solely cosmetic.
A cosmetic operation is one which beautifies or changes a person's appearance.
Example 1
Glenn had several courses of botox injections to reduce the appearance of wrinkle lines on his forehead.
These procedures are cosmetic and a Medicare benefit is not payable.
Glenn's expenses are ineligible for the net medical expenses tax offset.
Example 2
Anne had an operation to remove a bump on her nose.
This operation is cosmetic and a Medicare benefit is not payable.
Anne's expenses are ineligible for the net medical expenses tax offset.
However, if Anne had the operation to correct a breathing difficulty, a Medicare benefit would be payable. While the operation might still be cosmetic in nature, her expenses would be eligible for the net medical expenses tax offset.
Example 3
Sue underwent laser vision correction surgery.
Laser eye surgery is performed to correct a person's vision. It changes the function, but not the appearance of the eye.
As the procedure is not cosmetic, Sue's expenses are eligible for the net medical expenses tax offset.
Example 4
Nicole underwent reconstructive surgery following earlier surgery to remove breast cancer.
A Medicare benefit is payable for the reconstructive surgery.
Nicole's expenses are eligible for the net medical expenses tax offset.
A cosmetic dental service or treatment is one which beautifies or changes a person's appearance. In determining whether or not such a service or treatment is solely cosmetic, the normal meaning of 'solely' applies.
Example 1
Margaret had braces fitted.
As braces are fitted for many reasons that are not cosmetic, such as to fix the problem of crowded teeth, missing teeth, misaligned jaws or bites, braces are not considered to be solely cosmetic.
Margaret's expenses are eligible for the net medical expenses tax offset.
Example 2
Chris had three courses of teeth bleaching to remove cigarette and coffee stains. Chris had naturally white teeth, and he underwent the procedure only to make his teeth whiter.
By the ordinary definition of 'solely' and 'cosmetic' this procedure is solely cosmetic.
Chris' expenses are ineligible for the net medical expenses tax offset.
Example 3
Russell had a jewel inserted in his tooth.
This procedure is solely cosmetic and his expenses are ineligible for the net medical expenses tax offset.
Example 4
Linda had a gold filling to repair a decayed tooth.
While the procedure may be cosmetic in nature, it is not solely cosmetic in nature, irrespective of the material used.
Linda's expenses are eligible for the net medical expenses tax offset.
Last Modified: Thursday, 28 June 2012