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Edited version of your private ruling
Authorisation Number: 1012504273627
Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to a medical expenses tax offset for a cosmetic procedure?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 2012
Year ended 30 June 2013
The scheme commences on:
1 July 2011
Relevant facts and circumstances
You underwent a cosmetic procedure at a plastic surgery clinic.
The procedure and cost was not claimed at all through Medicare or your private health fund.
The procedure was undertaken as you felt it may help your self confidence.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Reasons for decision
Under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936) a tax offset is available to a resident taxpayer for certain net medical expenses.
Subsection 159P(4) of the ITAA 1936 defines 'ineligible medical expenses' as payments:
(a) to a legally qualified 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;.
Your operation was performed by a legally qualified medical practitioner at a private hospital.
In determining whether an operation is cosmetic in nature, the ordinary definition of 'cosmetic' applies. The Macquarie Dictionary 4th ed (2005) defines 'cosmetic' as, relevantly:
2. serving to beautify; imparting or improving beauty, especially of the complexion.
3. designed to effect a superficial alteration while keeping the basis unchanged…
4. intended for show; superficial."
Therefore, a cosmetic operation is one which beautifies or changes a person's appearance. The surgery was undertaken in order to boost your self-confidence. Your operation is considered to be cosmetic in nature.
Additionally, you have not received any Medicare benefit or claim through your private health fund in respect of your surgery.
Your expenses are ineligible medical expenses because they were for a cosmetic operation which did not attract a Medicare payment. Therefore, you are unable to include these expenses when calculating your eligibility to a medical expenses tax offset.
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