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Edited version of your written advice

Authorisation Number: 1051280638001

Date of advice: 11 September 2017

Ruling

Subject: net medical expenses tax offset

Questions and answers:

No.

No.

This ruling applies for the following periods

Year ending 30 June 20XX

This scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You have had false teeth fitted.

The work was performed by a legally qualified dentist.

You had out-of-pocket medical expenses relating to your dental expenses.

You did not claim the NMETO in the 2013-14 and 2014-15 income years.

Relevant legislative provision

Income Tax Assessment Act 1936 section 159P

Reasons for decision

Summary

You will not be able to claim NMETO for the 2017-18 income period as you do not meet the requirements of section 159P of the Income Tax Assessment Act 1997 (ITAA 1997).

Reasoning

Section 159P of the ITAA 1997 provides the conditions for claiming the NMETO. As of 1 July 2015 you are only able to claim the NMETO if you have claimed the offset in the 2013-14 and 2014-15 income periods. The exception to this is if the expense relates to an aid for a person with a disability, relates to a service rendered by a person as an attendant of a person with a disability or relates to care provided by an approved provider under the Aged Care Act 1997.

You did not claim the NMETO in the 2013-14 and 2014-15 income periods and thus you do not meet that condition. However, there are still the other three criteria which you can meet. You will not meet the requirement of a service rendered by a person as an attendant of a person with a disability and your expenses are not related to care provided by an approved provider. This means that the expenditure for your dentures would have to meet the definition of a disability aid.

The schedule 3 of the explanatory memorandum for the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 provides some overview as to what a disability aid is. The act states:

This provides examples of aids such as wheel chairs or maintenance of guide dogs and as such dentures do not meet this definition. Furthermore, example 3.6 states:

You had false teeth fitted. However, for the purposes of the NMETO your false teeth will not be a disability aid. Therefore your out-of-pocket dental expenses are not eligible medical expenses for the purposes of the NMETO and you are not entitled to make a claim.


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