ATO Interpretative Decision

ATO ID 2001/156 (Withdrawn)

Income Tax

• This ATO ID is withdrawn as what constitutes eligible therapeutic treatment is considered in ATO ID 2001/243.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Can the taxpayer claim the medical expenses rebate for a mattress replacement system and recline lift chair under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), on the basis that the cost of purchasing these items is a payment 'for therapeutic treatment administered by direction of a legally qualified medical practitioner' within the meaning of paragraph 159P(4)(d) (ITAA 1936)?

Decision

No, the cost of acquiring the mattress replacement system and recline lift chair is not a payment 'for therapeutic treatment administered by direction of a legally qualified medical practitioner' within the meaning of paragraph 159P(4)(d) (ITAA 1936).

Facts

The taxpayer suffers from very poor circulation and limited movement, which are symptoms of a serious medical condition. The taxpayer is hospitalised as a result of complications associated with the medical condition, and during the period of hospitalisation, the taxpayer experiences severe bed sores.

As part of the healing process overseen by the medical practitioner responsible for the taxpayer's treatment, an air flotation mattress is installed in the hospital for the taxpayer's use. The air flotation mattress is designed to prevent bed sores by alleviating pressure and stimulating circulation.

Upon the taxpayer's release from hospital, the medical practitioner responsible for the taxpayer's treatment recommends that the taxpayer purchase an air flotation mattress in order to prevent the bed sores recurring.

The medical practitioner also recommends that the taxpayer obtain an electronic recline lift chair to enable the taxpayer to sit upright.

Reasons For Decision

Subsection 159P(1) (ITAA 1936) states, inter alia, that an amount paid by a taxpayer in the year of income as medical expenses less any amount paid to the taxpayer in respect of those medical expenses shall be treated as a rebatable amount in respect of that year of income. Paragraph 159P(4)(d) (ITAA 1936) defines medical expenses as payments made for therapeutic treatment administered by direction of legally qualified medical practitioner.

For the purposes of paragraph 159P(4)(d) (ITAA 1936), the term 'therapeutic treatment' contemplates that the treatment administered by the medical practitioner is directed toward the cure of the ill patient or management of the patient's illness.

In this case, the cost of acquiring the mattress and chair is not a payment for therapeutic treatment administered by direction of a legally qualified medical practitioner, as the purchase of these items is preliminary to the rendering of the therapy. Accordingly, the taxpayer may not claim the medical expenses rebate for a mattress replacement system and recline lift chair under section 159P (ITAA 1936), as the cost of purchasing these items is not a payment 'for therapeutic treatment administered by direction of a legally qualified medical practitioner' for the purposes of paragraph 159P(4)(d) (ITAA 1936).

Legislative References:
Income Tax Assessment Act 1936
   section 159P
   subsection 159P(1)
   paragraph 159P(4)(f)

Case References:
Case R95
   84 ATC 633

Related ATO Interpretative Decisions
ATO ID 2001/154 ATO ID 2001/155

Keywords
Rebates
Deductions & expenses
Medical expenses
Medical expenses rebates

Business Line:  Private Groups and High Wealth Individuals

Date of publication:  1 August 2001

ISSN: 1445-2782