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Edited version of your written advice
Authorisation Number: 1012918904773
Date of advice: 1 December 2015
Ruling
Subject: Medical expenses tax offset
Question
Are you entitled to a medical expenses tax offset for the 2013-14 or 2014-15 financial years?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2014
Year ended 30 June 2015
The scheme commenced on
1 July 2013
Relevant facts
You and your spouse have incurred substantial out of pocket medical expenses in the 2013-14 financial year.
In the 2014-15 financial year, you again incurred out of pocket medical costs.
You did not receive a medical expenses tax offset in the 2012-13 financial year.
Your medical expenses did not relate to disability aids, attendant care or aged care.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Detailed reasoning
A medical expenses tax offset may be available under subsection 159P(1) of the Income Tax Assessment Act 1936 where you pay certain 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.
Under recent changes to the legislation, the medical expenses tax offset is being phased out.
To be eligible to claim this offset in 2013-14, you must have either:
• received this offset in your 2012-13 income tax assessment, or
• paid for medical expenses relating to disability aids, attendant care or aged care.
To be eligible to claim a medical expenses tax offset in 2014-15, you must have either:
• received this offset in your 2012-13 and 2013-14 income tax assessments, or
• paid for medical expenses relating to disability aids, attendant care or aged care.
In your case you did not receive a medical expenses tax offset in the 2012-13 financial year. Therefore you are not eligible to claim a medical expenses tax offset for the 2013-14 or 2014-15 financial years.
Your personal circumstances are acknowledged, however, the legislation provides no discretion and does not allow a medical expenses tax offset.