Medical Expenses Tax Offset
While you can't usually claim laser eye surgery from Medicare or your health fund, you may be able to claim a medical expenses tax offset to help recover your costs. Better still, you could claim your spouse's and other dependants' surgery too.
The following information is brought to you by Welch Porter Accountants and may be of benefit when costing your surgery. Please seek professional advice before making any decisions regarding your finances.
Medical Expenses Offset Means Tested
The Net Medical Expenses Tax Offset will be means tested from 1 July 2012.
For people with adjusted taxable income above the Medicare levy surcharge thresholds ($84,000 for singles and $168,000 for couples or families in 2012/2013), the threshold above which a taxpayer can claim the medical expenses offset will be increased to $5,000 (indexed annually thereafter) and the rate of reimbursement will be reduced to 10% for eligible out of pocket expenses incurred.
Laser Eye Surgery
Laser eye surgery is regarded as elective surgery by Medicare and therefore no reimbursement available. These costs however, do qualify as medical expenses when claiming the medical expenses tax offset.
Medical Expenses Paid for Dependants
Medical expenses can include qualifying expenditure paid, not only in respect of yourself, but also in respect of your dependants. Your dependants must be Australian residents for tax purposes and are defined to include:
- Your spouse (legal or defacto);
- A child under 21 years;
- A person for whom you are entitled to a dependants rebate.
This is not advice. Readers should not act solely on the basis of the material contained in this document. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas covered herein. This document is provided exclusively to Laser Sight for their exclusive use as a helpful guide to their clients and for their clients' private information. Therefore, it should be regarded as confidential and not be made available to any person without our prior approval.
Welch Porter Accountants
Level 4, 6-8 Underwood Street,
Sydney, NSW 2000, Australia P.O. Box R1376, Royal Exchange, NSW 1225
Consultant: Warren Porter
Telephone: (02) 9241 3773
Fax: (02) 9251 1008