INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 17 - Rebates  

Subdivision A - Concessional rebates  

SECTION 159Q   REBATE FOR MEDICAL EXPENSES - PHASE-IN LIMITS  

When medical expense rebate higher phase-in limit applies

159Q(1)  
The medical expense rebate higher phase-in limit applies if:


(a) an item of the following table applies to the following individual (the principal individual ) for the year of income:


(i) other than in a case to which subparagraph (ii) applies - the taxpayer;

(ii) in the case of an assessment mentioned in paragraph 159P(3)(a) - the beneficiary; and


(b) the amount mentioned in column 2 of the item exceeds the threshold mentioned in column 3 of the item.


When medical expense rebate higher phase-in limit applies
Item Column 1
This item applies to the principal individual for a year of income if:
Column 2
Income amount
Column 3
Threshold
1 on the last day of the year, the principal individual is married (within the meaning of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 ). the total of:
(a) the principal individual ' s adjusted taxable income for rebates for the year; and
(b) the adjusted taxable income for rebates for the year of the individual to whom the principal individual is married
the principal individual ' s family tier 1 threshold for the year
2 (a) item 1 does not apply; and
(b) on any day in the year, the principal individual has one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 ).
the principal individual ' s adjusted taxable income for rebates for the year the principal individual ' s family tier 1 threshold for the year
3 items 1 and 2 do not apply. the principal individual ' s adjusted taxable income for rebates for the year the principal individual ' s singles tier 1 threshold for the year

159Q(2)  
The reference in item 1 of the table in subsection (1) to the last day of the year is treated as being a reference to the day the principal individual dies, if the principal individual dies during the year.

159Q(3)  
Despite section 5 of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 , for the purposes of item 2 of the table in subsection (1) of this section, an individual is treated as not being a dependant of the principal individual on a day if the individual is married (within the meaning of that Act) to the principal individual on that day.

159Q(4)  
In the case of an assessment mentioned in paragraph 159P(3)(a) , treat a reference in the table in subsection (1) to the principal individual ' s adjusted taxable income for rebates for the year as being a reference to the amount in respect of which the trustee is liable to be assessed, as mentioned in that paragraph. Phase-in limits

159Q(5)  
The medical expense rebate higher phase-in limit is $5,000.

Note:

This amount is indexed annually: see section 159HA .

159Q(6)  
The medical expense rebate lower phase-in limit is $2,000.

Note:

This amount is indexed annually: see section 159HA .


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