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  • Tax deductions and offsets for participants

    You cannot claim a deduction for anything paid for by the NDIS, even if the expense is associated with producing your assessable income. This includes deductions for depreciation of capital assets, or other capital expenditure.

    Net medical expenses tax offset

    You cannot claim the net medical expenses tax offset (NMETO) for medical expenses paid by the NDIS.

    You may be eligible to claim the NMETO if you use your own funds to pay for certain medical expenses not covered by the NDIS.

    Example: Eligibility for NMETO

    Andrew is a participant under the NDIS who is self-managing his plan. He receives $8,000 under his plan to buy a prosthetic limb. However, Andrew wants to purchase a more expensive model, which costs $12,000.

    Even though the NDIS will not fund the more expensive model, Andrew decides to proceed with the purchase. He uses the $8,000 he received from the NDIS and $4,000 from his own savings.

    Andrew is not entitled to the NMETO for the $8,000 paid under the NDIS, but he can claim for the $4,000 paid out of his personal savings.

    End of example

    See also:

    Last modified: 07 Oct 2016QC 50242