Net medical expenses tax offset phase out
On 14 May 2013, the government announced in the 2013–14 Budget that it will phase out the net medical expenses tax offset.
From 1 July 2013, those taxpayers who received the offset in their 2012–13 income tax assessment will continue to be eligible for the offset for the 2013–14 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. Similarly, those who receive the tax offset in their 2013–14 income tax assessment will continue to be eligible for the offset in 2014–15.
The changes mentioned above will not apply to all taxpayers – the offset will continue to be available for taxpayers with out-of-pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.
The amending Act received royal assent on 18 March 2014.
For more information, refer to Media release no.072External Link jointly issued on 14 May 2013 by the then Treasurer and Assistant Treasurer.
Legislation and supporting material
The following legislation received royal assent on 18 March 2014:
Abstract: The government announced in the 2013-14 Budget that the net medical expenses tax offset would be phased out.