ATO help to understand net medical expenses tax offset changes
Thursday, 26 June 2014
The ATO is offering a range of information to assist those affected by the phasing out of the Net Medical Expenses Tax Offset.
Net medical expenses are your eligible medical expenses minus any refund a person got or is entitled to get from Medicare or their private health fund.
If you are eligible, the Net Medical Expenses Tax Offset reduces the amount of income tax that you have to pay.
The ATO’s Mike Ingersoll says people need to check if they are still eligible before claiming the offset in their 2013-14 tax return.
“To be eligible to claim this time round, you need to have received the offset for the 2012-13 tax year.
“And if you want to claim it for the 2014-15 tax year, which is the final year for which the offset will be available, you will need to have received it for the 2013-14 tax year.”
“People will however be able to claim the offset for disability aids, attendant care or aged care expenditure up to 30 June 2019.”
Mike says the income test (based on your family circumstances and your adjusted taxable income) still applies to anyone claiming the offset.
“There’s a net medical expenses offset calculator on the ATO website to help you work out the tax offset you are entitled to recieve.”
For more information on how the changes may affect you:
- Go to www.ato.gov.au/medicalexpenses
- Contact your registered tax agent, or
- Phone the ATO on 1300 137 290 between 8.00am and 6.00pm during office hours.