Edited version of private ruling

Authorisation Number: 1011649724791

This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.

Ruling

Are the fees you pay for a registered nurse, an eligible medical expense for the purposes of the medical expenses tax offset?

Yes.

This ruling applies for the following period

Year ended 30 June 2010

The scheme commenced on

1 July 2009

Relevant facts

Your dependant spouse suffered heart failure.

Your spouse has been assessed at a very high level of care.

Your spouse has been provided with registered nursing care.

An approved aged care service provider provides the services of the nurse at your home.

The Australian Government provides a daily subsidy. The subsidy is paid through Medicare directly to the approved aged care service provider.

You pay a care recipient contribution. This amount is invoiced as community care charges and paid directly to the approved aged care service provider.

The nurse's duties are administering medication, wounds management and showering and dressing. The nurse attends your home three times a day.

Relevant legislative provisions

Income Tax Assessment Act 1936 Subsection 159P(1)

Income Tax Assessment Act 1936 Subsection 159P(4)

Income Tax Assessment Act 1936 Subsection 159P(5)

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.

The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $1,500 for the 2009-10 income year.

The term medical expenses are defined in paragraph (a) of subsection 159P(4) 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.

Subsection 159P(5) of the ITAA 1936 extends that definition to include employers (not being a public or private hospital) of relevant persons in respect of the provision of services or treatment by the relevant person, shall be taken to be a payment made to the relevant person.

The term illness is not defined in the ITAA 1936 and therefore it is necessary to look at the ordinary meaning of the term. An illness includes a sickness, disease, or disorder of the body or the mind and involves a deviation from the normal healthy state.

In your case, your spouse suffered heart failure, this is considered to be an illness. An approved aged care provider provides you with a registered nurse. The nurse attends your home daily to ensure your spouse receives their prescribed medication and is bathed and dressed.

As a registered nurse is considered to be a legally qualified nurse and the monthly payments to the approved aged care provider represents the remuneration to the registered nurse, the payment qualifies as a medical expense for the purposes of the medical expenses tax offset.