| Disclaimer This edited version has been archived due to the length of time since original publication.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 your private ruling
Authorisation Number: 1012041945800
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. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Eligibility to claim medical expenses tax offset for facial surgery
Question 1
Are you able to claim a tax offset for the cost of remedial facial surgery?
Answer
No.
This ruling applies for the following period
Year ended 30June 2012
The scheme commences on
1 July 2011
Relevant facts and circumstances
In 2011 you underwent a medical procedure described as a lower face and neck lift.
Over the last couple of years there has been deterioration to this area of your face, in particular sagging giving your face a lop-sided appearance. This has also had other negative effects on your health.
The operation was performed in a private hospital by a legally qualified medical practitioner.
You were not entitled to a Medicare benefit under Part II of the Health Insurance Act 1973.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 159P.
Income Tax Assessment Act 1936 subsection 159P(4).
Reasons for decision
Under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936) a tax offset is available to a resident taxpayer for certain net medical expenses.
Paragraph 159P(4) of the ITAA 1936 defines ineligible medical expenses as payments:
(a) 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;.
Your operation was performed by a legally qualified medical practitioner at a private hospital.
In determining whether an operation is cosmetic in nature, the ordinary definition of 'cosmetic' applies. The Macquarie Dictionary 4th ed (2005) defines 'cosmetic' as, relevantly:
1. serving to beautify; imparting or improving beauty, especially of the complexion.
2. designed to effect a superficial alteration while keeping the basis unchanged…
3. intended for show; superficial."
Therefore, a cosmetic operation is one which beautifies or changes a person's appearance. Your operation has been described as a lower face and neck lift and you have said it was performed to improve your appearance by making good the changes to your face that had deteriorated over time following your accident. As your operation was designed to change your appearance, it is considered to be cosmetic.
Additionally, you have not received any Medicare benefit in respect of your surgery as the medical procedure does not meet the criteria for a benefit to be paid.
Your expenses are ineligible medical expenses because they were for a cosmetic operation which did not attract a Medicare payment.
You are unable to include these expenses when calculating your eligibility to a medical expenses tax offset.