ATO Interpretative Decision
ATO ID 2001/185
Income Tax
Medical expenses tax offset - maintenance of wheelchairsFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Does expenditure on wheelchair maintenance qualify as a medical expense as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Decision
Yes, the cost of maintaining a wheelchair, including the replacement of parts and batteries, is a medical expense for the purpose of the medical expenses tax offset.
Reasons For Decision
Section 159P of the ITAA 1936 provides for a rebate (tax offset) to a taxpayer whose net medical expenses in the year of income exceed the threshold dollar amount specified in the section. The amount of the rebate is equal to 20% of the expenses that exceed the threshold.
Medical expenses are defined in subsection 159P(4) of the ITAA 1936. Paragraph 159P(4)(f) includes in the definition of medical expense, payments ' in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner' (emphasis added).
Taxation Ruling TR 93/34: medical expense rebate - meaning of medical or surgical appliance, explains that wheelchairs are medical or surgical appliances for the purposes of the medical expenses rebate.
In Case F25 74 ATC 130; (1974) 19 CTBR (NS) 288 Case 43, the Board of Review stated that the phrase '"payments in respect of", is wide enough to cover maintenance or repair as well as its original cost.' When applied to wheelchairs, this encompasses maintenance and replacement of parts; for example, batteries, electronic and motorised parts.
Date of decision: 20 July 2001
Legislative References:
Income Tax Assessment Act 1936
159P
159P(4)
159P(4)(f)
Case References:
Case F25/Case 43
74 ATC 130
(1974) 19 CTBR (NS) 288
Related Public Rulings (including Determinations)
TR 93/34
Keywords
Rebates
Medical expenses
Medical expenses rebates
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 20 July 2001 | Original statement |
| 29 November 2013 | Updated statement | |
| 11 August 2017 | Archived |