They say an apple a day can keep the doctor away but I swear I keep a steady supply of apples in the house and sickness still manages to get us. When I take the time to add up the scary number of medical expenses that we incur every year, the only thing keeping me from running to our alcohol cabinet and drowning my sorrows is knowing that at least there will be some financial relief in my year end tax return.
The net medical expenses tax offset basically offers a 20% money back in your refund on eligible expenses over the amount of $2,060. There’s no ceiling limit and you can include the costs for yourself, your spouse, your children under 21 years of age and any other dependant of yours.
The term medical expenses is wide and includes payments made to a doctor, nurse or chemist (prescription medication), dentist, medical/surgical appliances prescribed by a doctor as well as many other items. Feel free to contact us at info@iqaccountants.com.au if you are after a more detailed list.
I strongly recommend keeping your medical receipts or simply obtaining a year end statement of expenses from medicare and your private health insurer prior to doing your tax. These documents, combined with your pharmaceutical receipts will assist in determining whether you meet the threshold.
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