The Government has introduced legislation changing eligibility for the net medical expenses tax offset; restricting who can claim and what medical expenses can be claimed.
The changes involve two principle modifications and relate to the eventual phase out to this tax offset in 2019:
- increase to the threshold (subject to income tests - see table below) from $2060 and $5000 to $2162 and $5100 - ie. only net medical expenses in excess of the thresholds may be eligible for the tax offset
- transitional rules relating to the phase out of the tax offset (see below).