ATO Interpretative Decision
ATO ID 2001/228
Income Tax
Medical expense tax offset - travel and accommodation expensesFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Are travel and accommodation expenses incurred in order to obtain medical treatment included within the definition of medical expenses as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Decision
No. Travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Facts
The taxpayer who resides in a country area suffers from a medical condition, treatment for which is only available in a city.
The taxpayer incurs travel and accommodation expenses in order to receive such medical treatment.
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.
Subsection 159P(4) of the ITAA 1936 specifically defines medical expenses which are eligible for the medical expenses rebate. The definition does not include the costs of travel or accommodation to obtain medical treatment. This was confirmed by the decision of the Administrative Appeals Tribunal in Case R12 84 ATC 165; (1984) 27 CTBR (NS) Case 63. In that case, travelling expenses whilst necessary in order to receive medical treatment, were held not to be a payment for the medical treatment.
Accordingly, travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Date of decision: 31 July 2001
Legislative References:
Income Tax Assessment Act 1936
section 159P
subsection 159P(4)
Case References:
Case R12 / Case 63
84 ATC 165
(1984) 27 CTBR (NS)
Keywords
Medical expenses
Medical expenses rebates
Travel expenses
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 31 July 2001 | Original statement |
| 31 January 2014 | Updated statement | |
| 27 October 2016 | Archived |