ATO Interpretative Decision
ATO ID 2001/737 (Withdrawn)
Income Tax
Deductibility of Personal Medical ExpensesFOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decisionThis 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the taxpayer entitled to claim a deduction for medical expenses that he/she has incurred under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The medical expenses are not deductible under section 8-1 of the ITAA 1997 as they are private in nature.
Facts
The taxpayer is currently receiving a disability benefit.
The insurance company requires the taxpayer to supply a doctor's certificate each month indicating the condition of his/her disability. This determines if the taxpayer's disability payment is to continue. If the doctor's certificate was not received the disability benefit would automatically cease.
The taxpayer seeks to claim an income tax deduction for the net medical expenses, ie. the difference between the doctor's fee paid and the Medicare Rebate received from Medicare.
Reasons for Decision
The deductibility of expenses associated with personal medical treatment was considered in Rossitto & Federal Commissioner of Taxation, Re; AAT Case 12,821 (1998) 39 ATR 1019; 98 ATC 2093. They were held to be of a private nature and as such, not deductible.
Medical expenses are considered to be of a private or domestic nature. Paragraph 8-1(2)(b) of the ITAA 1997 would preclude deductibility of the net doctor's fees.
Date of decision: 1 November 2001Year of income: Year ended 30 June 2001 Year ending 30 June 2002
Legislative References:
Income Tax Assessment Act 1997
section 8-1
paragraph 8-1(2)(b)
Case References:
Rossitto & Federal Commissioner of Taxation, Re; AAT Case 12,821
(1998) 39 ATR 1019
98 ATC 2093
Keywords
Deductions & expenses
Medical expenses
ISSN: 1445-2782
| Date: | Version: | |
| 1 November 2001 | Original statement | |
| You are here | 3 March 2006 | Archived |