20% of net medical expenses over $2,120

Highland Accounting Services Adelaide South Australia

Some major changes have been made to the Net Medical Expense Tax offset as from the 1st July 2013, in short the ATO will be phasing out the Tax Offset by the 30th June 2019.

During that phase out period there will be 2 transitional arrangements in place.

Category A: 

The NMETO will continue to be available for out-of-pocket medical expenses (as defined currently) from the 2012-13 income year until the end of the 2018-19 income year, but only for those medical expenses relating to disability aids,
attendant care or aged care.

(The large group of expenses that was previously allowed to be claimed, has now been reduce to disability aids, attendant care or aged care. As before the tax offset is still only available to the out of pocket expense. These expenses will be available to 30th June 2019.)

Category B:

Taxpayers who receive an amount of the NMETO for the 2012-13 income year will be eligible to claim the full range of medical expenses (as defined currently) for the 2013-14 income year.

Taxpayers who receive an amount of the NMETO for both the 2012-13 and 2013-14 income years will then also be eligible to claim the full range of medical expenses (as defined currently) for the 2014-15 income year.

(To claim the full amount of expenses in 2014, then a successful claim in the 2013 year is need, and making a successful claim in the 2013 and 2014 will then allow the Net Medical Expense Tax Offset to be claimed for the 2015 year.)

If you didn’t claim the Net Medical Expenses Tax Offset in 2013 or your expense didn’t include disability aids, attendant care or aged care, then you do not qualify for the tax offset.