What Medical Expenses can I claim?

One of the more complex deductions in our tax system is Medical Expenses. The rules have changed which has led to even more confusion.

The net Medical Expenses tax offset is being phased out. Expenses you can claim are restricted to disability aids, attendant care or aged care.

From 2015–16 until 2018–19, claims for this offset are restricted to net eligible expenses for disability aids, attendant care or aged care.

This means you can only claim this offset if you had expenses that relate to disability aids, attendant care or aged care.

Disability aids are items of property manufactured as, or generally recognised to be, an aid to the functional capacity of a person with a disability but, generally, will not include ordinary household or commercial appliances.

Attendant care expenses relate to services and care provided to a person with certain disabilities to assist with everyday living, such as the provision of personal assistance, home nursing, home maintenance, and domestic services to a person who is blind or permanently confined to bed or a wheelchair.

Aged care expenses relate to services and accommodation provided by an approved aged care provider to a person who is a care recipient or continuing care recipient within the meaning of the Aged Care Act 1997.

Net expenses are your total eligible medical expenses minus refunds from Medicare, National Disability Insurance Scheme (NDIS) and private health insurers which you or someone else, received or are entitled to receive.

This offset is income tested. If you are eligible for the offset, the percentage of net medical expenses you can claim is determined by your adjusted taxable income (ATI) and family status.

Use the information below to work out whether you can claim this tax offset.

Single (single at 30 June 2016 and no dependent children)

ATI threshold What can I claim?

$90,000 or less 20% of net medical expenses over $2,265

above $90,000 10% of net medical expenses over $5,343

Family

(with a spouse at 30 June 2016, or dependent child or children at any time during the year, or both)

ATI threshold What can I claim?

$180,000* or less 20% of net medical expenses over $2,265

above $180,000* 10% of net medical expenses over $5,343

* plus $1,500 for each dependent child after the first.

For the purpose of calculating the ATI threshold for this offset, a dependent child is your:

child under 21 years old
child, 21 to 24 years old who is studying full time at school, college or university (student under 25 years old) regardless of their income

For any further information please call us on 07 5502 6673