ATO Interpretative Decision
ATO ID 2001/629
Income Tax
Medical Expenses Tax Offset - electric scooter as a medical or surgical applianceFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the taxpayer entitled to a medical expenses tax offset under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936) for the cost of an electric 4 wheel scooter?
Decision
Yes. The taxpayer is entitled to a medical expenses tax offset under section 159P of the ITAA 1936 for the cost of an electric 4 wheel scooter as it qualifies as a medical or surgical appliance.
Facts
The taxpayer suffers from degenerative condition which limits their ability to walk.
The taxpayer's doctor prescribed the use of a specific type of electric 4 wheel scooter to assist mobility.
The taxpayer purchased the prescribed 4 wheel scooter from a business which specialises in equipment to assist the mobility impaired. The taxpayer uses the scooter as an aid to their mobility.
The cost of the scooter exceeded $1250.
Reasons for Decision
Subsection 159P(3A) of the ITAA 1936 provides that a tax offset is allowable to a taxpayer whose net medical expenses in the year of income exceed $1250.
The medical expenses must be paid by the taxpayer in respect of themselves or their dependant.
Paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 includes payments in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner.
Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' as being an instrument, apparatus or device which is manufactured, distributed or generally recognised as an aid to the function or capacity of a person with a disability or an illness.
Taxation Ruling TR 93/34 also provides that generally a household or commercial appliance is not a 'medical or surgical appliance' and that we need to look at the character of the appliance not the purpose for which it is proposed or used.
The electric 4 wheel scooter has been manufactured, is sold specifically and is generally recognised as an aid to those people who have a mobility impairment. It's character is to aid a mobility impaired person.
The purchase and use of the scooter was prescribed for the taxpayer by a legally qualified medical practitioner and the taxpayer uses it as an aid to their mobility. The scooter meets the requirements of a 'medical or surgical appliance'. Therefore the cost incurred by the taxpayer is a medical expense for the purpose of calculating the medical expenses tax offset under section 159P of the ITAA 1936.
Date of decision: 4 October 2001Year of income: Year ended 30 June 2001
Legislative References:
Income Tax Assessment Act 1936
section 159P
subsection 159P(3A)
subsection 159P(4)
Related Public Rulings (including Determinations)
TR 93/34
ATO ID 2001/154
ATO ID 2001/155
ATO ID 2001/156
Keywords
Rebates
Medical expenses
Medical expenses rebates
Medical & surgical appliances
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 4 October 2001 | Original statement |
| 16 April 2010 | Archived |