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Edited version of private ruling
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Ruling
Subject: Medical expenses
Question
Does the cost of your treatment qualify as an eligible medical expense for the purpose of calculating the medical expenses tax offset?
Answer: Yes.
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
1 July 2009
Relevant facts
Your medical practitioner referred you to a specialist to undertake a series of treatments to control a medical condition.
You provided a letter from the specialist confirming that you have a medical condition which requires treatment to improve this condition.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 159P
Reasons for decision
Section 159P of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a tax offset is allowable to a taxpayer whose net medical expenses (that is, medical expenses less any amount paid or payable by Medicare or a private health fund) in the year of income exceed a certain threshold. The tax offset is 20% of the amount by which the net medical expenses exceed the threshold which is $1,500 in the 2009-10 income year.
The term 'medical expenses' is defined in subsection 159P(4) of the ITAA 1936, and includes such payments made for therapeutic treatment administered by direction of a legally qualified medical practitioner.
In Case R95 84 ATC 633, the Tribunal found that 'therapeutic treatment' necessitated the exercise of professional skill in the medical field in some positive way, which would normally involve the person undertaking the act of administering the treatment using chemical agents or drugs or a physical or mental process of one kind or another in a manner that is directed towards the cure or management of disease or of diseased patients.
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 managing your medical condition, your medical practitioner referred you to a specialist for treatment. It is considered that the treatment administered by direction of your medical practitioner is for therapeutic treatment.
Therefore, the cost of the treatment qualifies as an eligible medical expense for the purpose of calculating the medical expenses tax offset.
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