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Ruling
Subject: Accommodation expenses
Question
Are you entitled to include accommodation expenses associated with your medical treatment, when calculating your 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 were on a driving holiday interstate for several weeks, when you suffered a medical condition.
You had an operation the next day to fix your medical condition.
After the operation there were a few complications.
As a result of the fracture and post operation complications, you were unable to drive.
Your specialist discouraged travel by air due to the post operative complications. You were unable to travel until the specialists had given you permission.
You had to extend your stay interstate for several weeks, incurring additional accommodation expenses.
Your health care provider has reimbursed you for part of these expenses.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 159P
Reasons for decision
The term medical expenses is defined at subsection 159P(4) of the Income Tax Assessment Act 1936 for the purposes of the medical expenses tax offset to cover payments to doctors, nurses, chemists, dentists, opticians and optometrists. It also covers payments for therapeutic treatment, medical or surgical appliances, the maintenance of a trained guide dog and remuneration paid to an attendant of an invalid or blind person.
The definition does not include the costs of food, travel or accommodation to obtain medical treatment. This was confirmed by the decision of the Administrative Appeals Tribunal in Case R12 84 ATC 165; 27 CTBR (NS) Case 63. In that case, travelling expenses whilst necessary in order to receive medical treatment were held not to be a payment for the medical treatment.
Accordingly, the expense of staying interstate for the duration of your treatment cannot be considered when calculating the amount of medical expenses that may contribute to the medical expense tax offset.
Therefore you are not entitled to include the cost of accommodation expenses in your claim for a medical expenses tax offset.
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