Medical Expenses Offset Phase Out

The government announced in 2013-2014 Budget that the medical expense offset will be phased out gradually. So what does it mean for the taxpayer?

From 1 July 2013, if you claimed out-of-pocket medical expenses for the 2012-2013 income year, you will be eligible for this offset for 2013-2014 income year. Similarity, for those who receive the offset in 2013-14 financial year will continue to be eligible for the offset in 2014-15.

Therefore, to be eligible for this offset in the coming 2014-15 income year, you must receive this in your last income tax return.

However, the above changes do not affect the taxpayers that claim net medical expenses relating to disability aids, attendant care or aged care. The offset will continue to be available for the taxpayers until 1 July 2019.

Medical expenses include payments:

  • to dentists, orthodontists or registered dental mechanics
  • to opticians or optometrists, including for the cost of prescription spectacles or contact lenses
  • to a carer who looks after a person who is blind or permanently confined to a bed or wheelchair
  • for therapeutic treatment under the direction of a doctor
  • for medical aids prescribed by a doctor
  • for artificial limbs or eyes and hearing aids
  • for maintaining a properly trained dog for guiding or assisting people with a disability (but not for social therapy)
  • for laser eye surgery, and
  • for treatment under an in-vitro fertilisation program
  • residential aged care expenses

If you need any help regarding this issue, do not hesitate to contact us on 08 8337 4460.

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