Medical expense tax offset
– A taxpayer with out of pocket medical expenses?
At a glance:
– The net medical expenses tax offset (NMETO) will be phased out by June 30, 2015 for some taxpayers.
– Ensure you keep records for all medical expenses you incur during the year.
– Contact us if you require any clarification or advice.
Net medical expenses are medical expenses incurred by individuals or their eligible dependents, less any refunds they received, or are entitled to, from Medicare or a private health insurer.
Eligibility for NMETO is dependent on a taxpayer’s family status and their adjusted taxable income (ATI).
Medical expenses include payments:
- To dentists, orthodontists or registered dental mechanics;
- To opticians or optometrists, including the cost of prescription spectacles or contact lenses;
- To a carer that looks after a person who is blind or permanently confined to a bed or wheelchair;
- For medical aids prescribed by a doctor;
- For laser eye surgery; and
- For treatment under an in-vitro fertilisation program.
Certain conditions need to be met when claiming the NMETO in the 2014/15 income tax return, which include:
- Having received the offset on 2012/13 and 2013/14 income tax assessment; or
- Having medical expenses that relate to disability aids, attendant care or aged care.
From July 1, 2015 until June 30, 2019, only expenses relating to disability aids, attendant care or aged care may be claimed as an offset.
For more information, click here.
– Taxpayers may not be entitled to NMETO if they have a nil tax liability.