ATO Interpretative Decision
ATO ID 2001/228 (Withdrawn)
Income Tax
Medical expense tax offset - travel and accommodation expenses-
This ATO ID is withdrawn because it contains a view in respect of a provision of the Income Tax Assessment Act 1936 that does not apply after the 2014-15 year of income. Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of decisions for years of income up to, and including, the 2014-15 year of income.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Are travel and accommodation expenses incurred in order to obtain medical treatment included within the definition of medical expenses as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Decision
No. Travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Facts
The taxpayer who resides in a country area suffers from a medical condition, treatment for which is only available in a city.
The taxpayer incurs travel and accommodation expenses in order to receive such medical treatment.
Reasons for Decision
Section 159P of the ITAA 1936 provides for a rebate (medical expenses tax offset) to a taxpayer whose net medical expenses in the year of income exceed the threshold dollar amount specified in the section.
Subsection 159P(4) of the ITAA 1936 defines medical expenses for the purposes of the medical expenses tax offset. The definition does not include the costs of travel or accommodation to obtain medical treatment. Furthermore, as held by the Administrative Appeals Tribunal in Case R12 84 ATC 165; (1984) 27 CTBR (NS) Case 63, travelling expenses, while necessary to receive treatment, were not in respect of that treatment.
Accordingly, travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Amendment History
| Date of amendment | Part | Comment |
|---|---|---|
| 31 January 2014 | Reasons for Decision, Keywords | Amended for clarity |
| Case References | Amended for style adherence |
Legislative References:
Income Tax Assessment Act 1936
section 159P
subsection 159P(4)
Case References:
Case R12 / Case 63
84 ATC 165
(1984) 27 CTBR (NS)
Keywords
Accommodation expenses
Deductions & expenses
Medical expenses
Medical expenses rebates
Rebates and offsets
Travel expenses
ISSN: 1445-2782
| Date: | Version: | |
| 31 July 2001 | Original statement | |
| 31 January 2014 | Updated statement | |
| You are here | 27 October 2016 | Archived |