| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 5010056081502
Date of advice: 17 January 2019
Ruling
Subject: Medical expenses
Can the expenses for prosthetic implants be included in the calculation of your Net Medical Expenses Tax Offset?
Answer
Yes
Question
Can the expenses for surgeon fees, anaesthetist and hospital fees related to the prosthetic implants be included in the calculation of your Net Medical Expenses Tax Offset?
Answer
No
This ruling applies for the following periods:
Year ended 30 June 2018
Year ending 30 June 2019
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You lost your limbs below your knees in a workplace accident.
You undertook extensive medical treatment for prosthetic artificial limbs.
You incurred and paid the costs of the prosthetic limbs and other fees.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159P
Reasons for decision
Subsection 159P(1B) of the Income Tax Assessment Act 1936 (ITAA 1936) states that:
For the 2013-14 to 2018-19 years of income, an amount that would otherwise be paid as medical expenses is treated as not being paid as medical expenses unless the payment:
(a) relates to an aid for a person with a disability; or
(b) relates to services rendered by a person as an attendant of a person with a disability; or
(c) relates to care provided by an approved provider (within the meaning of the Aged Care Act 1997) of a person who:
(i) is approved as a care recipient under that Act; or
(ii) is a continuing care recipient within the meaning of that Act.
Disability aids are items of property manufactured as, distributed as, or generally recognised to be, an aid to the function or capacity of a person with a disability but, generally will not include ordinary household or commercial appliances.
Artificial limbs are a disability aid and can be claimed; however the cost of the surgery does not fall under the definition of an aid for a person with a disability or any of the other categories and is not included in the calculation of your Net Medical Expenses Tax Offset.