| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012326948549
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Medical expenses tax offset
Question:
Can the cost of your therapy treatment be included as a medical expense for the purposes of calculating a medical expenses tax offset?
Answer:
Yes.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts
You were referred in writing by your specialist to a particular therapist for a course of treatment.
You have had regular therapy throughout the year as part of this treatment.
On occasion, you have been treated at the same practice for the same condition by different practitioners due to the particular therapist being unavailable temporarily.
Treating practitioners have in all cases worked from the same file and notes, including the regular written correspondence provided by your specialist to the practice with instructions on the treatment, as well as the updates provided back to the specialist by the lead treating therapist.
Relevant legislative provisions
Income Tax Assessment Act 1936 159(P).
Reasons for decision
The term 'medical expenses' is defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936), and includes such payments made for therapeutic treatment administered by direction of a legally qualified medical practitioner.
In Case R95 (1984) 27 CTBR (NS) 1154; 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.
Therapeutic treatment is administered by direction of a legally qualified medical practitioner when the treatment is undergone as part of the medical practitioner's care of the patient.
Furthermore, therapeutic treatment as a concept is concerned with healing or curing, rather than preventing the need for therapy (18 TBRD Case T67; 14 CTBR (NS) Case 31). Although the treatment must be administered by direction of a legally qualified medical practitioner, the treatment need not be administered by such a practitioner.
In your case, you were prescribed the therapy by a specialist, and the specific therapist and their professional colleagues at that practice, worked to administer the treatment.
Therefore, the therapy is therapeutic treatment administered by a legally qualified medical practitioner and payments for this treatment are eligible for the medical expenses tax offset under section 159P of the ITAA 1936.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
