Medical Expenses Tax Offset Phase Out?
If the Treasury proposal is adopted on Medical Expenses from 2019 on-wards there will be no point collecting your medical expense receipts.
PHASE-OUT OF THE NET MEDICAL EXPENSES TAX OFFSET
The Government is consulting on draft legislation and explanatory materials to implement the 2013-14 Budget measure to phase-out the net medical expenses tax offset (NMETO).
The Government announced that it would proceed with the measure on 6 November 2013 as part of the 18 announced but unenacted measures that would proceed in order to restore simplicity and fairness to the Australian tax system.
The Government is inviting submissions from all interested individuals and organisations.
This measure amends the tax law to phase-out the NMETO by the end of the 2018-19 income year. During the income years 2013-14 to 2018-19 the tax offset will be subject to two sets of transitional arrangements:
- From the 2013-14 income year until the end of the 2018-19 income year taxpayers can only claim the NMETO for medical expenses that both meet the current definition and eligibility requirements and relate to disability aids, attendant care or aged care.
- For the 2013-14 income year and 2014-15 income year, taxpayers will be eligible to claim the full range of medical expenses (as defined currently) but only if they have received an amount of the NMETO in the previous income year (or in both 2012-13 and 2013-14 in respect to claims in the 2014-15 income year).
Submissions are requested by Friday, 17 January 2014.