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Edited version of private ruling
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Ruling
Subject: Medical expense Tax Offset
Are the costs associated with your cosmetic surgery medical expenses for the purpose of the medical expenses tax offset?
No
This ruling applies for the following period:
1 July 2009 to 30 June 2010.
The scheme commences on:
1 July 2009
Relevant facts and circumstances
You are a resident of Australia.
You underwent cosmetic surgery by a legally qualified doctor.
Your medical expenses have not been reimbursed.
You were not entitled to Medicare benefits for this surgery.
Reasons for decision
A medical expenses tax offset is available to a taxpayer under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936), where the taxpayer pays medical expenses in an income year for themselves or a dependant who is an Australian resident, to the extent that they are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund.
The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $1,500 for the 2009-10 income year.
Subsection 159P(4) of the ITAA 1936 defines 'ineligible medical expenses' to include payments to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service for which a Medicare benefit is payable under Part II of the Health Insurance Act 1973.
In your case, you underwent a cosmetic operation for which a Medicare benefit was not payable. Therefore, for the purpose of the medical expenses tax offset, your cosmetic surgery is an ineligible medical expense and consequently the cost can not be included in the medical expenses tax offset calculations.
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