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Net Medical Expenses tax offset

Net Medical Expenses tax offset

If your personal taxable income is below $90,000 or family taxable income is below $180,000 and your net medical expenses are over $2,377 you may be eligible for a 20% tax offset.

The medical expenses that are included in the offset are:

  • Disability Aids
    • Wheelchairs
    • Hearing aids
    • Freestanding over-bed frame
    • Electric scooter
    • Anything prescribed by a doctor that is manufactured as an aid
  • Attendant care
    • Expenses related to the services or care of someone with disabilities
  • Aged care expenses
    • Expenses related to services and accommodation provided by an approved aged care provider. An approved care recipient is a person who has been assessed by the aged care assessment team (ACAT) as eligible for residential aged care or in-home aged care. Residential aged care payments can be for daily fees, income or means tested daily care fees, extra service fees, accommodation charges, periodic payments of accommodation bonds, interest on an outstanding instalment of a lump sum accommodation bond, amounts drawn from a lump sum accommodation bond and daily accommodation payments.

If  your personal taxable income is above $90,000 or family taxable income is above $180,000 you may receive a 10% tax offset on medical expenses over $5,423.

For more details check out the ATO website here: https://www.ato.gov.au/Individuals/Tax-return/2017/Supplementary-tax-return/Tax-offset-questions-T3-T11/T5-Total-net-medical-expenses-for-disability-aids,-attendant-care-or-aged-care-2017/

If you require further information please do not hesitate to contact us a call on 07 5437 9900.

References used Australian Taxation Office Website