If you reach a prescribed level of expenses for medical treatment for the year, you can claim a tax offset in that years tax return.
For the 2002/03 and subsequent financial years, the medical expenses tax offset is calculated as 20% of your net medical expenses over the threshold of $1,500.
Net medical expenses are the medical expenses you have paid less any refunds from Medicare or a private health fund.
Medical expenses relating to the following people qualify:
Your spouse [including de facto]
Any other child under 16 - not a student - who you maintained (subject to income tests)
A student under 25 years who you maintained (subject to income tests)
An invalid relative, parent or spouse's parent.
Claimable medical expenses include payments relating to:
Illnesses or operations - paid to legally qualified doctors, nurses or chemists
Hospitals and nursing homes
Therapeutic treatment - at the direction of a doctor
Medical or surgical wigs
Artificial limbs, surgical appliances, etc
Medical aids - prescribed by a doctor
Non-claimable medical expenses include:
Ambulance charges and subscriptions
Private health fund subscriptions
Non-prescribed vitamins and health foods
Inoculations and vaccinations.
If you are unsure if this affects you, please contact your accountant.
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