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Edited version of private ruling
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Ruling
Subject: Medical expenses tax offset
Are you entitled to claim the medical expenses offset for Laparoscopic gastric banding surgery?
Yes.
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
1 July 2009
The scheme that is the subject of this ruling
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You were referred to person A by your general practitioner in regards to your weight issues.
A letter from person A states that you were suffering from co-morbidities that were associated with your obesity.
These included painful joints, back pain, daytime drowsiness and snoring.
The letter also says these co-morbidities are life threatening.
You have receipts for all expenses.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 159P(1).
Income Tax Assessment Act 1936 Subsection 159P(4).
Reasons for decision
Summary
The expenses were incurred in respect of an operation for medical reasons. Accordingly, they qualify for inclusion in the calculation of the medical expenses tax offset.
Detailed reasoning
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 the government or public authority or a society, association or fund.
The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $1,500 for the income year.
Medical expenses are defined in paragraph 159P(4)(a) of the ITAA 1936 to include payments to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital in respect of an illness or operation.
Taxation Ruling IT 2359 contains the Commissioner's view as to the meaning of operation. Paragraph 5 of IT 2359 states that:
in its ordinary meaning the term "operation" refers to an act performed by hand and/or instrument to some part of the body to remedy deformity, injury, disease, pain, etc.