Tax Deductions for Oxygen Concentrators

NET MEDICAL EXPENSES TAX OFFSET (NMETO)

2013-2014 FINANCIAL YEAR

Who may be eligible?

Depending on your family status and adjusted taxable income (ATI) you may be eligible to claim a tax offset for the net medical expenses you have incurred over the applicable claim threshold.

What are the Adjustable Taxable Income (ATI) levels?

Family Status ATI Threshold What can I claim?
Single(Single at 30 June 2013 and no dependent children) $84,000 or less 20% of net medical expenses over $2,120
Above $84,000 10% of net medical expenses over $5,000
Family (with a spouse at 30 June 2013, or dependent children at any time during the year, or both) $168,000* or less 20% of net medical expenses over $2,120
Above $168,000* 10% of net medical expenses over $5,000

* Plus $1,500 for each dependent child after the first

The thresholds are indexed each year. The table above shows details valid for the 2012-13 tax year.

There is no upper limit to the amount you can claim.

What does Net Medical Expenses mean?

Net Medical Expenses are the medical expenses you have paid less any refunds you received, or could receive from Medicare or a private health insurer.

Who can the medical expenses be claimed for?

  • You
  • Your spouse, regardless of their income
  • Your children who were under 21 years old, including adopted and stepchildren, regardless of their income
  • Any other child under 21 years old who was not a student, whom you maintained, and whose adjusted taxable income for the period you maintained them was less than

 

  • For the first child under 21 years old
    • The total of $28 plus $28.92 for each week you maintained them, or
    • $1,786 if you maintained them for the whole year
  • For any other child under 21 years
    • The total of $282 plus $21.70 for each week you maintained them, or
    • $1,410 if you maintained them for the whole year

  A student under 25 years old whom you maintained and whose ATI was less than

  • The total of $282 plus $28.92 for each week you maintained them, or
  • $1,786 if you maintained them for the whole year

– A child-housekeeper, but only if you can claim an amount for them as part of your Zone or overseas forces tax offset or could have claimed for them had your ATI or the combined ATI of you and your spouse not exceeded $150,000

– An invalid relative, parent or spouse’s parent, but only if you can claim for them as part of your Zone or overseas forces tax offset or could have claimed for them had your ATI or the combined ATI of you and your spouse not exceeded $150,000

– A dependent (invalid or carer), but only if you can claim a Dependent (invalid and carer) tax offset for them or could have claimed for them had your ATI or the combined ATI of you or your spouse not exceeded $150,000.

You and your dependants MUST be Australian residents for tax purposes.

You can include medical expenses paid while travelling overseas.

What types of medical expenses can be claimed?

  • Payments to doctors, dentists, allied health providers and opticians for spectacles
  • Medical aids and appliances
  • Laser eye surgery
  • In vitro fertilisation (IVF) procedures
  • Carers for the blind or wheelchair bound and maintaining  a guide dog
  • Residential aged care costs, including daily fees and accommodation costs

CHANGES to the NET MEDICAL EXPENSES TAX OFFSET from July 2013 ONWARDS

From 1 July 2019 taxpayers will no longer be able to claim a tax offset for out-of-pocket medical expenses.

Those who claimed NMETO in 2012-2013 will be eligible to claim in the 2013-2014 income year. Likewise, only those people who claimed NMETO in 2013-2014 will be able to claim it in the 2014-2015 year. These offsets will apply to all medical expenses.

All other tax payers who did not claim for the 2012-2013 year will be restricted to out-of-pocket expenses for disability aids, attendant care or aged care expenses which exceed the relevant thresholds.

“Medical or surgical appliances” are defined under Taxation Ruling TR 93/94 and include a wide range of equipment for which you may be able to claim. For more detailed information refer to TR 93/94 available from the Australian Taxation Office website.

FOR FURTHER INFORMATION visit the Australian Taxation Office website at: http://www.ato.gov.au

DISCLAIMER

The above information has been supplied to assist members of the public. Advanced Healthcare does not claim to represent the Australian Taxation Office. You are advised to always check with the appropriate government department to confirm the conditions of eligibility and to check if there have been any changes. 1 November 2013

 

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