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Ruling
Subject: Medical expenses
Question
Can you include amounts paid for in-home care as a medical expense when calculating the medical expenses tax offset?
Answer
No
This ruling applies for the following period
Year ended 30 June 2012
Year ending 30 June 2013
The scheme commenced on
1 July 2011
Relevant facts
You suffered a medical condition and spent several months in a nursing home.
During this period your guardian made several visits to assess your general well being. They decided you would be better off returning to your home.
You have employed registered carers to care for you at home, as you require 24 hour care to assist with your daily needs.
Your carers are not legally qualified as medical practitioners or nurses.
You are not blind or permanently confined to a bed or an invalid chair.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
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 term 'medical expenses' is defined in subsection 159P(4) of the ITAA 1936. Paragraph (a) of the definition includes payments made to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation. Paragraph (h) includes remuneration of a person for services rendered by them as an attendant of a person who is blind or permanently confined to a bed or an invalid chair.
In your case, you suffered a medical condition and require 24 hour care at home, as you need assistance with your daily needs. You have employed registered carers.
Your carers are not legally qualified medical practitioners or nurses and do not satisfy the criteria in paragraph (a). Also you do not satisfy the specific criteria defined in paragraph (h) as you are not blind or permanently confined to a bed or invalid chair. The payments made to your carers do not meet the definition of medical expenses for the purpose of the medical expenses tax offset.
Therefore, you are not entitled to a medical expenses tax offset in respect of the cost of your in-home care.
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