Net medical expenses tax offset
The Government announced in the 2013-14 Budget that it will phase out the net medical expenses tax offset, but what does this mean for your tax return?
The net medical expenses tax offset enables those who have medical expenses once rebates have been applied, above the threshold of $2060 for the tax year 2011-12, to claim back 20 per cent. Under certain circumstances, residential aged care expenses can also be included.
From 1 July 2013, those taxpayers who received the offset in their 2012-13 income tax assessment will continue to be eligible for the offset for the 2013-14 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. Similarly, those who receive the tax offset in their 2013-14 income tax assessment will continue to be eligible for the offset in 2014-15. This will be the last year you can claim the offset.
The changes mentioned above will not apply to all taxpayers - the offset will continue to be available for taxpayers with out-of-pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.
For more details about who can claim and which expenses are eligible, visit ATO.gov.au.
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