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Edited version of your written advice
Authorisation Number: 1051366042669
Date of advice: 1 May 2018
Ruling
Subject: Net medical expenses tax offset
Question
Can you claim the net medical expenses tax offset for the attendant care costs incurred for your dependant?
Answer
Yes
It is accepted the fees paid under the program are payments relating to services rendered by a person as an attendant of a person with a disability and are eligible medical expenses.
This ruling applies for the following period:
Year ended 30 June 2017
Year ended 30 June 2018
The scheme commences on:
1 July 2016
Relevant facts and circumstances
Your dependant was diagnosed with a medical Disorder on the XX XX XXXX
The speech pathologist, occupational therapist and paediatrician recommended your dependant to be provided with applied behavioural therapy (program).
Your dependant is non-verbal, incontinent and completely dependent on their caregivers to interpret their needs. They require constant supervision to ensure their safety and to assist with completing activities of daily living.
You are not be reimbursed any funds from Medicare or private health funds to pay for the therapist to provide the attendant care at home.
Your family threshold is less than $180,000 in the 2017 and 2018 financial years.
You are an Australian resident for tax purposes.
You have out-of-pocket expenses in relation to the fees you pay.
In the 2017 financial year you incurred expenses of $XXXX
In the 2018 financial year you incurred expenses of $XXXX
You will claim 100% of the costs incurred in the relevant income tax years.
You have not received a net medical expenses tax offset in your 2012-13 income tax assessment.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Income Tax Assessment Act 1936 Subsection 159P(1)
Income Tax Assessment Act 1936 Paragraph 159P(1B)(b)