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Edited version of private ruling
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Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to a medical expenses tax offset for the replacement of an electric scooter?
Answer
Yes
This ruling applies for the following period:
Year ended 30 June 2011
The scheme commences on:
1 July 2010
Relevant facts and circumstances
Your spouse continues to suffer from a medical condition that affects your spouse's walking and mobility.
You are required to replace the existing electric scooter that you purchased some years ago.
Your medical practitioner has prescribed the purchase of an electric scooter to assist your spouse's mobility.
You have provided a copy of a prescription from your medical practitioner in respect of your spouse's mobility requirements.
You have provided a copy of a tax invoice for the purchase of the electric scooter from a company who specialises in equipment to assist mobility.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Income Tax Assessment Act 1936 Subsection 159P(4)
Reasons for decision
A medical expenses tax offset is available to a taxpayer under section 159P 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. The medical expenses tax offset is 20% of the amount by which the net medical expenses exceed $2,000 for that year.
Medical expenses are defined in subsection 159P(4) of the ITAA 1936 to include expenses in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner.
Taxation Ruling TR 93/34 describes a 'medical or surgical appliance' as being an instrument, apparatus or device which is manufactured, distributed or generally recognised as an aid to the function or capacity of a person with a disability or illness.
You have purchased an electric scooter to assist your spouse's mobility. Your doctor has provided a letter prescribing the use of the scooter to assist your spouse's mobility.
The electric scooter meets the requirements of a 'medical or surgical appliance' for the purposes of subsection 159P(4) of the ITAA 1936. It is a device which is manufactured and distributed as an aid to the function or capacity of a person who is mobility impaired.
Therefore, the cost incurred in purchasing the scooter is an eligible medical expense for the purposes of the medical expense tax offset.