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Edited version of your private ruling
Authorisation Number: 1012553186288
Ruling
Subject: Medical expenses tax offset
Question 1
Is the cost of a hydrotherapy pool a medical expense for the purpose of calculating a medical expense tax offset?
Answer
No.
Question 2
Is the net cost of a pool hoist a medical expense for the purpose of calculating a medical expense tax offset?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2013
The scheme commenced on
1 July 2012
Relevant facts
You have a condition.
Your doctor supports the use of a hydrotherapy pool.
You also installed a hoist to get you into and out of the pool.
You received a grant for the major part of the hoist.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Reasons for decision
A medical expenses tax offset is available under section 159P of the Income Tax Assessment Act 1936 (ITAA 1936), where you incur medical expenses in an income year for yourself or a dependant who is an Australian resident.
The term 'medical expenses' is defined in subsection 159P(4) of the ITAA 1936 to include payments in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner, and for therapeutic treatment which has been administered by direction of a legally qualified medical practitioner. It also covers payments to doctors, nurses, chemists, dentists, opticians and optometrists, in respect of an illness or operation.
Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' as an instrument, apparatus or device which is manufactured as, distributed as, or generally recognised to be an aid to the function or capacity of a person with a disability or an illness. TR 93/34 also stipulates that generally, a household or commercial appliance is not a 'medical or surgical appliance'.
The question of whether the appliance is an aid to function or capacity, looks at the character of the appliance and not the purpose for which the appliance is prescribed or used.
Hydrotherapy pool
Paragraph 9 of TR 93/34 specifically excludes hydrotherapy pools, spa pools and swimming pools as items that are 'medical or surgical appliance'. Paragraph 26 of TR 93/34, states that the fact that an article has a therapeutic purpose does not mean that the article is a 'medical or surgical appliance'.
Consequently, the cost of installing a hydrotherapy pool does not qualify for the medical expenses tax offset as the pool is not considered a medical or surgical appliance and is not a medical expense.
Hoist
The hoist is manufactured and distributed as an aid to the function of a person with a disability. Therefore, the net expense of the hoist qualifies as a medical expense for the purpose of claiming a medical expenses tax offset.