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Ruling
Subject: Medical expenses tax offset - therapeutic treatment
Question 1
Is therapeutic treatment which is not at the direction of a legally qualified medical practitioner considered a medical expense as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
No
This ruling applies for the following period:
Year ended 30 June 2012
The scheme commences on:
1 July 2011
Relevant facts and circumstances
During the 2011-12 financial year you received therapeutic treatment.
You did not obtain a referral from a registered medical practitioner to undertake this therapeutic treatment.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Reasons for decision
Section 159P of the ITAA 1936 provides for a tax offset to a taxpayer whose net medical expenses in the year of income exceed the threshold dollar amount specified in the section. The amount of the tax offset is equal to 20% of the expenditure that exceeds the threshold amount.
Subsection 159P(4) of the ITAA 1936 defines 'medical expenses'. Paragraph (d) of the definition of medical expenses includes a payment, 'for therapeutic treatment administered by direction of a legally qualified medical practitioner '.
It was held in Case A53 69 ATC 313; (1969) 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.
In the context of paragraph (d) of the definition, therapeutic treatment involves the exercise of professional skill in the medical field in a way which normally involves the person administering the treatment using drugs or physical or mental processes of one kind or another for the purpose of curing or managing disease (Case R95 84 ATC 633; (1984) 27 CTBR (NS) Case 148 ).
As your therapeutic treatment was not directly referred by a medical practitioner to a particular person for specific treatment, it is not considered a medical expense eligible for the medical expenses tax offset.