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Edited version of your written advice

Authorisation Number: 1012816536984

Ruling

Subject: Medical expenses

Question

Can you claim medical expenses when, you have not received an amount of the medical expense tax offset in your 20YY-XX income tax assessment?

Answer

No

This ruling applies for the following period

Year ended 30 June 20ZZ

The scheme commences on

1 July 20XX

Relevant facts and circumstances

The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are: 

In July 20XX you discovered you a medical condition so you saw your doctor.

Your dentist who gave you the final breakdown of what corrective work was required and costs involved.

Later in 20XX you had teeth removed and implants inserted.

You did not claim the medical expenses tax offset in the 20YY-XX income year and now incurred several thousand dollars' worth of medical expenses in the 20XX-ZZ income year.

Relevant legislative provisions

Income Tax Assessment Act 1936 subsection 159P(1)

Reasons for decision

The net medical expenses tax offset was phased out, so in the 20XX-ZZ and 20ZZ-AA years, the eligibility criteria have changed to restrict who can claim and what medical expenses can be claimed.

To be eligible to claim the net medical expenses offset in 20XX-ZZ, you must have received the offset in your 20YY-XX assessment or paid for specific medical expenses. If you received the offset, it will be listed on your 20YY-XX notice of assessment.

If you did not receive this offset in your 20YY-XX assessment, you can only claim net medical expenses relating to disability aids, attendant care or aged care. If your net medical expenses do not relate to these specific categories, you cannot claim the net medical expenses offset.

Disability aids are items of property manufactured as, or generally recognised to be, an aid to the functional capacity of a person with a disability but, generally, will not include ordinary household or commercial appliances.

Attendant care expenses relate to services and care provided to a person with a disability to assist with everyday living, such as the provision of personal assistance, home nursing, home maintenance, and domestic services.

Aged care expenses relate to services and accommodation provided by an approved aged care provider to a person who is a care recipient or continuing care recipient within the meaning of the Aged Care Act 1997.

In your case, you have not received an amount of the medical expense tax offset in your 20YY-XX income tax assessment so your are limited to claims relating to disability aids, attendant care or aged care only.

Based on your circumstances paragraph 159P (1B)(a) of the ITAA 1936 would be the only provision where your expenses can be considered. This paragraph states:-

A person who is considered to be disabled is entitled to claim the cost of a disability aid towards meeting the Net Medical Expense relevant threshold. This is provided that the aid is designed to be an 'aid to function or capacity'. That is, the aid helps a person in performing activities of daily living or provides assistance to alleviate the effect of the disability.

Examples include wheelchairs, walking frames, hearing aids, car controls for the disabled and similar appliances.

In your case, you had a major dental procedure performed. The cost of the medical procedure and the associated costs are not considered to be a disability aid.

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