In May 2013, the government announced changes to the net medical expenses tax offset. This offset was based on a % return of net medical expenses above a set threshold.
In 2013-14, the net medical expenses tax offset will be phased out.
From 1 July 2013, those taxpayers who received their offset in their 2012-13 income tax assessment will continue to be eligible for the offset for the 2013-14 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. This is similar to those who received the tax offset in their 2013-14 income tax assessment; they will also continue to be eligible for the offset in 2014-15.
However, these changes do not apply to all taxpayers. The offset will continue for those taxpayers with out-of-pocket medical expenses relating to disability aids, attendant care of aged care expenses until 1 July 2019.
If you wish to claim this offset, remember to keep all details of the medical expenses you wish to claim, details of refunds you received or are entitled to receive and a list of all prescriptions purchases from a pharmacist.
This change has the potential to affect many people. If you have any questions regarding the changes to net medical expenses or would like to learn more, please don’t hesitate to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
