There has been a change to the medical expense rebate for the 2015/16 year. In recent years, taxpayers were eligible if a claim in prior years was made, however this is now redundant. The ATO is phasing out the net medical expense rebate.
The following medical expenses that taxpayers can claim are now restricted to the following:
- Disability aids that are prescribed by a doctor such as hearing aids, artificial limbs or eyes.
- Attendant care and Aged care expenses where a carer looks after a taxpayer who is permanently confined to a bed or wheelchair or is blind; or
- Expenses that are in relation to residential or in-home aged care.
For further information detailing the type of medical expenses that would qualify for a claim click here.
The net medical expense rebate operates in two different ATI (Adjusted Taxable Income) threshold tiers.
For the 2015/16 year they are as follows:
For single tax payers as of 30th June 2016 with no dependent children:
- ATI of $90,000 or less are able to claim 20% of net medical expenses over $2,265.
- ATI is above $90,000, 10% of net medical expenses over $5,343 are claimable.
For family taxpayers with a spouse as of 30th June 2016, or dependent child or children at any time during the year (the threshold increases by $1,500 per child for each dependent child after the first):
- ATI of $180,000 or less are able to claim 20% of net medical expenses over $2,265.
- ATI is above $180,000, 10% of net medical expenses over $5,343 are claimable.
Please contact our office and you require more information if you think you may be eligible for this rebate.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.