Do you have large medical expenses? Read this

Do you have any large medical expenses? What happens to you if  you aren’t able to claim these expenses?

As announced in the Government’s 2013-14 Budget, net medical expenses tax offset (NMETO) will be phased out by July 1, 2019. You should check whether you qualify to claim the NMETO.

if you require any clarification or advice.

Here are some further details

1. NMETO is a tax offset that may be claimed by eligible individual taxpayers in their annual tax returns.
2. Eligibility for NMETO is dependent on a taxpayer’s family status and their adjusted taxable income (ATI).
3. In the 2013-14 Budget, the Government announced that the NMETO will slowly be phased out by July 1, 2019.
4. Medical expenses incurred during the 2013-14 and future income years, can be claimed as normal in a taxpayer’s individual tax returns where the eligibility criteria are met up to the 2018-19 financial year.

However, if a taxpayer did not claim the NMETO in their 2012-13 tax return, they will not be eligible to claim the tax concession even if the other conditions are met for subsequent income years.

1. The exception to this rule is for taxpayers who have medical expenses in relation to disability aids, attendant care or age care expenses. If a taxpayer incurred any of the mentioned medical expenses, they will not need to have claimed the NMETO in their previous tax returns to remain eligible in subsequent income years.
2. Currently, the threshold for medical expenses using a taxpayer’s ATI is $84,000 for singles and $168,000 for couples.
3.  If a taxpayer’s ATI is below the threshold, any medical expenses in excess of $2,120 can be claimed at 20%. For those above the threshold, a 10% rate applies if medical expenses are in excess of $5,000.

To get further clarification book an appointment with one of our advisors here. We can also let you know what medical expenses are claimable.