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Edited version of private advice
Authorisation Number: 1051522982037
Date of advice: 31 May 2019
Ruling
Subject: Medical expenses for the upkeep and maintenance of guide and assistance dogs
Question
Are the costs for the upkeep and maintenance of a guide and assistance dog considered medical expenses for the purpose of claiming the net medical expenses tax offset?
Answer
Yes.
Medical expenses are defined in paragraph 159P(4)(i) of the Income Tax Assessment Act 1936 (ITAA 1936) to include payments for the maintenance of a properly trained dog used for the guidance or assistance of a person with a disability.
Accordingly, the costs of maintaining an assistance dog are medical expenses that relate to an aid for a person with a disability for the purposes of claiming the net medical expenses tax offset.
The net medical expenses tax offset is 20% of the amount by which the net medical expenses exceed the threshold for the relevant income year.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You have two trained and accredited assistance dogs which mitigate the effects of your medical disabilities. Each dog provides unique assistance to you in different situations.
Dog 1 is trained to assist you with numerous tasks including waking you from disturbed sleep such as nightmares, deep pressure and post-traumatic stress disorder.
Dog 2 is trained to assist you with fetching dropped items, roll you over and fetch the phone if you lose consciousness and to act as a guide dog due to your visual impairment.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 159P(1)
Income Tax Assessment Act 1936 subsection 159P(4)
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