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Medical expenses tax offset

Discussion in 'Accounting, Tax & Legal' started by eddyl, 2nd Jun, 2008.

  1. eddyl

    eddyl Well-Known Member

    Joined:
    9th May, 2008
    Posts:
    48
    Location:
    Sydney
    Hi,

    I was wondering whether anyone could shed some light on this tax situation. I previous years I had no taxable income, however I paid medical expenses of over $1500 per year since this offset came into effect. Is it possible to accumulate this tax offset, or can you only claim this offset for medical expenses incurred in the current tax year?


    Cheers,

    Eddy
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Its a non-refundable personal tax offset.

    In other words, if you do not have sufficient tax liability in a year to use up the offset then it is wasted.

    Cheers,

    Rob
     
  3. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    Remember too that it's per family. So if you have a spouse/de facto with tax credits then they can claim it along with theirs and the rest of the families medicals.
     
  4. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    So you claim all your family's medical expenses as an offset in the name of one of the parents who actually does have enough income to utilise it.

    Spouse is a dependant - no income test

    Child under 21 is a dependant - no income test

    Other "dependants" have to qualify similar to other dependant rebate requirement definitions

    (NOTE - assuming Kevin Rudd has not modified these in the as-yet-to-be-detailed budget measures).

    Cheers,

    Rob