Are you entitled to claim the Net Medical Expenses Tax Offset this year?
You are only entitled to claim the Net Medical Expense offset for the 2013-2014 Financial Year, if you received the offset in your 2012-2013 tax assessment. If entitled, you are able to claim 20% of your net medical expenses over $2,162 if your *adjusted taxable income is $88,000 or less (or if you are a family $176,000 or less), or 10% of your net medical expenses over $5,100 if you earn $88,000 and above (family $176,000 and above). This rule will continue to the 2014-2015 financial year, where you will only be entitled to the offset if you also claimed the offset in your 2013-2014 tax assessment. The 2014-2015 year will be the last year you can claim this offset.
This of course has its exceptions, that is, if you paid medical expenses only relating to disability aids, attendant care or aged care, then you are eligible to claim the offset regardless of weather you claimed the offset last financial year. You can continue claiming this offset for disability aids, attendant care or aged care up until the 2018-2019 income tax year in which it will then be abolished.
If you need further guidance on this matter please contact us here at Rubiix.
*Adjusted Taxable Income – taxable income, reportable super contributions, adjusted fringe benefits, certain tax-free government pensions or benefits, target foreign income, total net investment loss less child support you paid to another person.
Submitted by: Seska Tobe- Senior Accountant