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Edited version of private ruling
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Ruling
Subject: medical expenses
Question
Does the cost of physiotherapy treatment and purchasing a sacroiliac belt, glucometer and monitoring strips qualify as a medical expense for the purpose of calculating a medical expenses tax offset?
Answer
Yes.
This ruling applies for the following period
Year ending 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
Your spouse was referred by their doctor to receive physiotherapy and be fitted for sacroiliac belt to assist with symphysis pain.
Your spouse will have further consultations in the future in relation to their referral.
Your spouse purchased a gluometer and monitoring strips, to monitor their blood levels at the request of their specialist.
Your spouse is now on medication to assist them with treating their medical condition.
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 income year.
Physiotherapist
Paragraph (d) includes payments for therapeutic treatment administered by direction of a legally qualified medical practitioner.
The therapeutic treatment must be administered by direction of a legally qualified medical practitioner.
It was held in Case A53 69 ATC 313; 15 CTBR (NS) Case 30 that the mere suggestion or recommendation by a medical practitioner that the patient undergoes therapeutic treatment is not sufficient for the payment to qualify as medical expenses. The patient would have to be referred by a medical practitioner to a particular person for specific treatment.
Therapeutic treatment as a concept is concerned with healing or curing, rather than preventing the need for therapy (18 TBRD Case T67; 14 CTBR (NS) Case 31). Although the treatment must be administered by direction of a legally qualified medical practitioner, the treatment need not be administered by such a practitioner.
Treatments provided by a physiotherapist are generally considered to be therapeutic in nature.
In your case your spouse was referred by their legally qualified medical practitioner to a specific physiotherapist for the treatment of specified aliments. As discussed above, the costs incurred for these specific therapeutic treatments, do qualify as medical expenses under section 159P of the ITAA 1936 and can be included when calculating the medical expenses tax offset.
Medical or surgical appliance
Under paragraph 159(4)(f) of the ITAA 1936, the definition of 'medical expenses' includes payments in respect of a medical or surgical appliance prescribed by a 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) of the ITAA 1936 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.
To be an aid to function or capacity, the item must help the person with the illness or disability, perform the activities of daily living: paragraph 4 of Taxation Ruling TR 93/34. An item that merely has a therapeutic purpose, such as relieving, healing or preventing a medical condition, is not considered to be a medical or surgical appliance within the meaning of paragraph 159P(4)(f) of the ITAA 1936: paragraph 7 of Taxation Ruling TR 93/34.
Glucometer, Monitoring Strips and Sacroiliac Belt
You have incurred an expense in purchasing a glucometer, monitoring strips and sacroiliac belt for your spouse.
These items meet the requirements of a medical or surgical appliance as it is an apparatus which is recognised as an aid to the function or capacity of a person with a disability or illness.
Therefore the expenditure you have incurred on the glucometer and monitoring strips will qualify as an eligible medical expense.