Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 (11 of 2014)

Schedule 3   Phase-out of rebate for medical expenses

Part 2   Consequential amendments

Fringe Benefits Tax Assessment Act 1986

2   Subsection 58L(2)

Repeal the subsection, substitute:

(2) In this section:

medical expenses means payments:

(a) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation; or

(b) to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth; or

(c) to a person registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by that person for the supply, alteration or repair of artificial teeth; or

(d) for therapeutic treatment administered by direction of a legally qualified medical practitioner; or

(e) in respect of an artificial limb (or part of a limb), artificial eye or hearing aid; or

(f) in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner; or

(g) for:

(i) the testing of eyes or the prescribing of spectacles or contact lenses by a person legally qualified to perform those services; or

(ii) the supply of spectacles or contact lenses in accordance with any such prescription; or

(h) as remuneration of a person for services rendered by him or her as an attendant of a person who is blind or permanently confined to a bed or an invalid chair; or

(i) for the maintenance of a dog used for the guidance or assistance of, but not social therapy for, a person with a disability, being a dog that the Commissioner is satisfied is properly trained in the guidance or assistance of persons with disabilities.

medical treatment means an act or thing where a payment in respect of the act or thing:

(a) is a medical expense; and

(b) is not a payment:

(i) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service (within the meaning of subsection 3(1) of the Health Insurance Act 1973) for which a medicare benefit is payable under Part II of that Act; or

(ii) to a legally qualified dentist for dental services that are, or dental treatment that is, solely cosmetic.

(3) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified medical practitioner, nurse or chemist (the qualified person ) in respect of the provision of services or treatment, or the supply of goods, if:

(a) the payment is made to an employer (not being a public or private hospital) of the qualified person, or a person with whom the qualified person has entered into a contract for services; and

(b) the payment is made in respect of the provision of those services or that treatment, or the supply of those goods, by the qualified person.

(4) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified dentist in respect of the provision of dental services or treatment or the supply, alteration or repair of artificial teeth if:

(a) the payment is made to an employer of the dentist, or a person with whom the dentist has entered into a contract for services; and

(b) the payment is made in respect of the provision of those services or that treatment or the supply, alteration or repair of those artificial teeth, by the dentist.

(5) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a person (a registered dental mechanic ) registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by the registered dental mechanic for the supply, alteration or repair of artificial teeth if:

(a) the payment is made to an employer of such a person, or a person with whom such a person has entered into a contract for services; and

(b) the charges are made in respect of the supply, alteration or repair of artificial teeth by the dental mechanic.