Tax Laws - for patients Pt. 1

Australian Tax rebates - Medical expenses rebate

You may be entitled to a medical rebate if:- you reside in Australia, and
- your net medical expenses (after refunds from Medicare and health funds) exceed $1250

The rebate is allowable for medical expenses for:
- yourself, your spouse, a child under 21, a dependant child, housekeeper, a dependant child or student, a dependant invalid relative, a dependant parent or parent-in-law

The rebate amount is 20% of the excess of net medical expenses over$1250.

Example:

You incur medical expenses of $2000 for your spouse, and $1500 for your child. You are a member of a health fund, and total refunds received are $1100

Net medical expenses ($3500 - $1100) $2400
Less threshold $1250
----------
$1150

Rebate 20% x $1150 $ 250

TIP

Ensure you keep records of all valid medical expenses not only for yourself but for all of those for whom you can claim rebate. You will be surprised as to how these items may add up to.

Rodney fisher, 'MAKING TAX LAWS WORK FOR YOU - a simple guide to tax planning',McGraw-Hill, 2001, AUSTRALIA pg49-51