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Edited version of your private ruling

Authorisation Number: 1012336620058

Ruling

Subject: Medical expenses tax offset

Question

Are you entitled to include the cost of additional electricity to run the air conditioner in a calculation for a medical expenses tax offset?

Answer

No.

This ruling applies for the following period

Year ended 30 June 2012

The scheme commenced on

1 July 2011

Relevant facts

You have a number of medical conditions which require the extensive use of an air conditioner all year.

Relevant legislative provisions

Income Tax Assessment Act 1936 Section 159P

Income Tax Assessment Act 1936 Subsection 159P(4)

Reasons for decision

Under section 159P of the Income Tax Assessment Act 1936 (ITAA1936) a tax offset is available to a resident taxpayer whose net medical expenses paid in the year of income exceed the relevant threshold.

Net medical expenses are the medical expenses a taxpayer has paid less any refunds they received, or could have received, from Medicare or a private health fund.

A taxpayer may claim a tax offset of 20% of the net medical expenses paid in the year of income in excess the relevant threshold.

The term 'medical expenses' is defined in subsection 159P(4) of the ITAA 1936, and includes such payments made:

In your case, we accept that the extensive use of the air conditioner is necessary in assisting with your condition. However, it is not considered to be a medical or surgical appliance. Therefore the cost of running the air conditioner is can not be included in a calculation for the purposes of the medical expenses tax offset.


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