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Edited version of private ruling
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Ruling
Subject: Medical expenses tax offset
Are you entitled to claim a medical expenses tax offset for the cost of a visual aid?
Yes.
This ruling applies for the following period:
Year ended 30 June 2010
The scheme commences on:
1 July 2009
Relevant facts and circumstances
You are legally blind and require significant assistance to read.
You purchased a visual aid device in the 2010 income year.
The device was recommended to you by your doctor.
The device is an auto-focus desktop video magnification system designed to assist people with low vision.
It allows you to read text and view photos by magnifying text and objects in different colours with adjustable brightness and contrast.
The device is connected to your existing television.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P.
Reasons for decision
A medical expenses tax offset is available to a taxpayer under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where the taxpayer pays medical expenses in an income year for themselves or a dependant who is an Australian resident, to the extent that they are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund.
For the 2010 income year the medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $1,500.
To claim a medical expense tax offset, the expenditure must be an eligible medical expense.
The term 'medical expense' is defined in subsection 159P(4) of ITAA 1936 and includes payments made in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner.
According to Taxation Ruling 93/34 'medical or surgical appliance' for the purposes of the definition of 'medical expenses' is an instrument, apparatus or device which is:
· manufactured as; or
· distributed as; or
· generally recognised to be
an aid to the function or capacity of a person with a disability or illness and the appliance is an aid of function or capacity if it helps a person in performing activities of daily living.
The visual aid is considered a medical or surgical appliance and you are entitled to include this expense in calculating your medical expenses tax offset.