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Edited version of private advice
Authorisation Number: 1012678954428
Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to claim medical expenses tax offset (METO)?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts
You were not entitled to claim a METO in the 2012-13 financial year.
You had substantial medical expenses in the 2013-14 financial year.
You were not aware that the law had changed to prevent you from making a claim if you had not made a claim in the 2012-13 financial year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
On 14 May 2013, the government announced in the 2013-14 Budget that it will phase out the net medical expenses tax offset.
From 1 July 2013, those taxpayers who received the offset in their 2012-13 income tax assessment will continue to be eligible for the offset for the 2013-14 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. Similarly, those who receive the tax offset in their 2013-14 income tax assessment will continue to be eligible for the offset in 2014-15.
The changes mentioned above will not apply to all taxpayers - the offset will continue to be available for taxpayers with out-of-pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.
In your case, you were not entitled to claim a METO in the 2012-13 financial year. Therefore, you are no longer entitled to claim a METO for any future year.
We acknowledge that you may not have been aware of the changes to the legislation. However, the Commissioner does not have the discretion to make exceptions in your circumstances.