ATO Interpretative Decision

ATO ID 2001/379 (Withdrawn)

Income Tax

• This ATO ID is withdrawn as the interpretative issue is covered by ATO ID 2001/243.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 a medical expenses rebate for the cost of dancing lessons, undertaken on advice from a doctor under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

No, the taxpayer cannot claim a medical expenses rebate for the cost of dancing lessons, undertaken on advice from a doctor under section 159P of the ITAA 1936

Facts

The taxpayer suffers from an ongoing medical condition.

Their doctor advised the taxpayer that there are significant health benefits in learning and participating in dance.

The taxpayer incurred expenses in attending dancing lessons.

Reasons for decision

Subsection 159P(1) of ITAA 1936 provides a concessional rebate for medical expenses incurred by a taxpayer in respect of themselves or any dependants.

Medical expenses are defined in subsection 159P(4) of the ITAA 1936. Paragraph(d) of the definition of medical expenses includes payments 'for therapeutic treatment administered by direction of a legally qualified medical practitioner'.

In order to qualify for the rebate such payments must meet the following conditions:

(1)

they are for therapeutic treatment; and

(2)

the therapeutic treatment is administered by the direction of a legally qualified medical practitioner.

Therapeutic treatment not formally prescribed by a doctor but rather undertaken on the basis of a mere suggestion or recommendation by a doctor to the patient is not enough for the treatment to qualify. The patient must be referred to a particular person for specific treatment.

In Case R95 84 ATC 633; 27 CTBR (NS) Case 148, the Administrative Appeals Tribunal found that 'therapeutic treatment' necessitated the exercise of professional skill in the medical field. This would normally involve the person administering the treatment using chemical agents or drugs or some physical and mental processes which are directed towards the cure or management of a disease or ailment.

The taxpayer's doctor did not recommend any particular dance lessons or instructor. Nor did the doctor specify or give directions as to the nature of the dancing lessons to be undertaken. The lessons were not therefore undertaken at the direction of a legally qualified medical practitioner.

In addition the dance lessons do not fall within the meaning of therapeutic treatment.

The expenses incurred by the taxpayer for dancing lessons therefore do not qualify as eligible medical expenses for the purposes of the medical expenses rebate under section 159P of the ITAA 1936.

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

Case References:
Case R95 / Case 148
   84 ATC 633
   27 CTBR (NS) 1154

Keywords
Medical expenses
Medical expenses rebates

Business Line:  Small Business/Individual Taxpayers

Date of publication:  29 September 2001

ISSN: 1445-2782