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Edited version of your private ruling
Authorisation Number: 1012576149170
Ruling
Subject: medical expenses tax offset
Question
Will the costs you pay for the medical expenses of a surrogate qualify as a medical expense for the purposes of calculating a medical expense tax offset?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You and your spouse are seeking the assistance of a surrogate to carry a baby for you due to fertility issues.
You will pay the medical costs for procedures performed on the surrogate.
The surrogate is not a dependant.
Relevant legislative provisions
Income Tax Assessment Act 1997 - Subsection 159P(1)
Income Tax Assessment Act 1997 - Subsection 159P(4)
Reasons for decision
A medical expenses tax offset is available under subsection 159P(1) of the Income Tax Assessment Act 1936 (ITAA 1936) where you pay medical expenses in an income year for yourself or a dependant who is an Australian resident, to the extent that you are not reimbursed, or are eligible to be reimbursed, from a government or public authority or a society, association or fund.
A 'dependant' is defined in subsection 159P(4) of the ITAA 1936 as:
· The spouse of the taxpayer; or
· A child of the taxpayer who is under 21 years of age; or
· A person for whom the taxpayer is entitled to a dependant's rebate, or a child or student in respect of whom the taxpayer qualifies for a notional dependants rebate.