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Edited version of private ruling
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Ruling
Subject: medical expenses tax offset - home carer
Question
Can you include amounts paid for in-home care as a medical expense when calculating the medical expenses tax offset?
Answer
No
This ruling applies for the following period
Year ended 30 June 2009
The scheme commenced on
1 July 2008
Relevant facts
You suffer from a chronic health condition.
Your doctor has stated you need a full-time home care attendant.
Your carer is not legally qualified as a medical practitioner or a nurse.
You are not blind or permanently confined to a bed or an invalid chair.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Reasons for decision
A medical expenses tax offset is available to a taxpayer under sub-section 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.
The term 'medical expenses' is defined in sub-section 159P(4) of the ITAA 1936. Paragraph (a) of the definition includes payments made to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation. Paragraph (h) includes remuneration of a person for services rendered by them as an attendant of a person who is blind or permanently confined to a bed or an invalid chair.
In your case, you suffer from a chronic health condition and require full-time care as you need assistance with your daily needs.
Whilst we acknowledge that without this full-time home care, you would have to live in residential care, you do not satisfy the specific criteria defined in paragraph (h) as you are not blind, or permanently confined to a bed or an invalid chair. Also your carers are not legally qualified medical practitioners or nurses and do not satisfy the criteria in paragraph (a).
Therefore, you are not entitled to a medical expenses tax offset in respect of the cost of carers.