| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011672448299
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
Is the cost of a surgical procedure 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 2008
The scheme commenced on
1 July 2007
Relevant facts
You have suffered from a medical condition for most of your life and your condition is monitored by your general practitioner.
Due to your medical condition you had developed excess fatty tissue around your upper and lower eyelids and this was causing pressure on the eye.
Your ophthalmologist referred you to a micro surgeon.
The surgeon performed a surgical procedure to your upper and lower eyelids, to alleviate pressure on your eyes.
You have received a rebate from Medicare and your private health fund for the procedure.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 159P(1)
Income Tax Assessment Act 1936 Subsection 159P(4)
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 2007-08 income year.
Subsection 159P(4) of the ITAA 1936 operates to allow a medical expenses tax offset for payments to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation. However, you are not entitled to a tax offset for medical expenses which are ineligible medical expenses.
Subsection 159P(4) of the ITAA 1936 defines ineligible medical expenses as payments to a legally qualified practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service for which a Medicare benefit is payable under Part II of the Health Insurance Act 1973.
Where an operation is cosmetic and no Medicare benefit is payable the expenses cannot be included in a medical expenses tax offset claim. However, some cosmetic procedures are performed for a medical reason.
In your case, you have had a surgical procedure for which a Medicare rebate was payable. The procedure was undertaken for the treatment of an eye problem which you had been experiencing as a result of your medical condition. As a Medicare rebate was payable for the procedure, the operation is not considered a solely cosmetic procedure.
Accordingly, you are entitled to include the costs of the surgery in your medical expenses tax offset claim.