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Edited version of private ruling
Authorisation Number: 1011698954690
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Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to include the cost of carers looking after you in your own home as an eligible medical expense for the purposes of the medical expenses tax offset?
Answer: No.
This ruling applies for the following periods
Year ended 30 June 2009
Year ended 30 June 2010
Year ending 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
Year ending 30 June 2014
The scheme commenced on
1 July 2008
Relevant facts and circumstances
You have been assessed and approved to receive low level residential aged care and community care.
You live in your own home and pay for personal care every fortnight provided by an approved care provider.
The type of care provided to you each day by this service consists of assistance with showering, dressing, house cleaning, laundry and shopping.
The care provided to you by the Department of Health and Ageing was approved during 2008.
The type of care recommended by this service consists of self care (supervision), moving around at or away from home (supervision), transport, domestic assistance, meals (preparation) and home maintenance.
You have a number of people who visit you to attend to your daily chores and they are not legally qualified medical practitioners or nurses. They all have certificates in aged care.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 159P(3A) and
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 the relevant threshold for the income year.
In your case, you pay for carers from a registered care provider, to provide personal care to you at your home. The carers are not legally qualified medical practitioners or nurses.
Expenditure on medically related expenses can only qualify for the tax offset if it falls within the definition of medical expenses contained in subsection 159P(4) of the ITAA 1936. Paragraphs (a) to (g) of this subsection require each of the various services described to be provided by or at the direction of a legally qualified medical practitioner. As the carers in your case are not legally qualified medical practitioners and the additional services have not been provided under the direction of a legally qualified medical practitioner, the cost of the additional services cannot qualify for the medical expenses tax offset under any of these definitions.
The cost of carers looking after you in your own home is not an eligible medical expense for the purposes of the medical expenses tax offset as the carers are not legally qualified medical practitioners or nurses.