Practitioners have been reminded that the net medical expenses tax offset is being phased out. To be eligible for this offset for the 2014/15 financial year, a client must have received an amount of the tax offset in both of their 2012/13 and 2013/14 income tax assessments.

This eligibility rule does not apply to clients with out-of-pocket medical expenses relating to disability aids, attendant care an aged care. These expenses can continue to be claimed until 30 June 2019 under the same label.

If a client’s 2012/13 notice of assessment issued by the ATO shows an amount of zero under the net medical expenses tax offset, they would not have been eligible to receive this offset in the 2013/14 financial year, and will not be eligible for the 2014/15 year either.

Ref: ATO Newsroom – Eligibility for net medical expenses offset.

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.