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Edited version of private ruling
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Ruling
Subject: medical expenses tax offset
Are you entitled to a medical expenses tax offset for the cost of installing a swimming pool at your private residence?
No.
This ruling applies for the following periods:
Year ending 30 June 2010
Year ending 30 June 2011
The scheme commences on:
1 July 2009
Relevant facts and circumstances
You are an Australian resident for tax purposes.
You have had a medical condition since birth and can only do certain forms of exercise.
Your doctor has confirmed that pool therapy is your most beneficial option.
You are in the process of having a pool installed at your private residence as this is more convenient for you.
The purpose of having the pool is to exercise and maintain your mobility as confirmed by your doctor for therapy reasons.
Summary
The costs of installing a swimming pool at your private residence to assist in the management of your medical condition does not qualify as medical expenses for the purposes of the medical expenses tax offset under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936).
Detailed reasoning
Section 159P of the ITAA 1936 allows a medical expenses tax offset if you incur medical expenses in an income year or for a dependant who is an Australian resident.
Paragraph 159P(4)(f) of the ITAA 1936 defines medical expenses as payments made in respect of a medical or surgical appliance prescribed by legally qualified medical practitioner.
Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' for the purposes of paragraph 159P(4)(f) as an instrument, apparatus or device which is manufactured as, distributed as or generally recognised to be an aid to the function or capacity of a person with a disability or an illness.
Paragraph 7 of TR 93/34 states that the mere fact that an item gives the therapeutic treatment, in that it reveals, heals, or prevents a medical condition, does not make it a 'medical or surgical appliance'.
Paragraph 9 of TR 93/34 lists items which are not medical or surgical appliances. Swimming pools are listed at item (m). Pools of any description, are not medical or surgical appliances as they do not aid function or capacity and they are not manufactured or distributed as generally recognised to be an article or thing intended to achieve a medical or surgical end.
Under paragraph 159P(4)(d) of the ITAA 1936, the definition of 'medical expenses' includes payments made for therapeutic treatment administered by direction of a legally qualified medical practitioner.
In Case R95 84 ATC 633; 27 CTBR (NS) Case 148, the Tribunal found that 'therapeutic treatment' necessitated the exercise of professional skill in the medical field in some positive way, which would normally involve the person undertaking the act of administering the treatment using chemical agents or drugs or a physical or mental process of one kind or another in a manner that is directed towards the cure or management of disease or of diseased patients.
You have a current medical illness. Your general practitioner has advised you to under take aqua therapy to assist you in the management of your medical condition. You are having a swimming pool installed at your private residence for this purpose. Your aqua therapy is not being administered by a professional in the field.
The expenditure you will incur to installing the swimming pool for your aqua therapy does not meet the definition of a medical expense. Therefore, you are not entitled to claim a medical expenses tax offset for the cost of installing a swimming pool under section 159P of the ITAA 1936.