You may be eligible to claim a tax offset for their net out-of-pocket medical expenses.

Eligibility for the net medical expenses tax offset is means tested.

Above Threshold

Tax payers with an adjustable taxable income above the Medicare Levy surcharge thresholds ($84,000 for singles and $168,000 for a couple or family in 2012-13) can claim 10% of out of pocket medical expenses incurred in excess of $5,000 for 2012-13.  

The family income threshold will increase by $1,500 for each dependant child after the first.

Singles $84,000
Couples $168,000
Family (Single parents included) + 1 dependant $168,000
Family (Single parents included) + 2 or more dependants $168,000 + $1,500 for each dependant

Below Threshold

Taxpayers with an adjusted taxable income below these thresholds can claim 20% of their net out-of-pocket medical expenses over $2,120 for 2012-13 financial year. There is no upper limit on the amount you can claim.

Eligible medical costs

The net out-of-pocket medical expenses are the eligible medical costs the patient has paid less any rebates received, or entitled to receive, from Medicare or a private health insurer.

Not all medical expenses qualify to be included in the out-of-pocket medical expenses calculation. A complete list of what medical costs qualifies for the tax offset can be obtained from the Australian Taxation Office (ATO).

To see whether you are eligible to receive the tax offset benefit we recommend you contact the ATO or your accountant.

ATO Guide

Net medical expenses tax offset calculator