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Edited version of private advice
Authorisation Number: 1012623431701
Ruling
Subject: Medical expenses tax offset
Question
Is the cost of treatment overseas a medical expense for the purpose of claiming a medical expenses tax offset?
Answer
Yes.
This ruling applies for the following periods
Year ended 30 June 2015
The scheme commenced on
1 July 2014
Relevant facts
Your spouse is an Australian resident who has been diagnosed with a chronic medical condition.
Treatment for the condition is not available in Australia.
Your spouse will travel overseas to receive the treatment in the 2014-05 financial year.
The treatment will be provided by a legally qualified medical practitioner in a hospital.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 159P(1)
Income Tax Assessment Act 1936 Subsection 159P(4)
Reasons for decision
A medical expenses tax offset is available under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where you pay medical expenses in an income year for yourself or a dependant who is an Australian resident, to the extent that you are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund.
The definition of "medical expenses" in subsection 159P(4) of the ITAA 1936 includes payments to a legally qualified medical practitioner or a public or private hospital in respect of an illness or an operation.
While it is necessary that a taxpayer must be a resident of Australia to qualify for the tax offset, it is not necessary that the payments be made to a resident of Australia or that they are paid in Australia.
Your spouse has a medical condition for which they will be receiving treatment overseas performed in a hospital by a legally qualified medical practitioner.
The expense therefore qualifies as a medical expense for the purpose of claiming the medical expenses tax offset.
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