The 2013 Federal Budget announced that the Government intends to phase out the out-of-pocket medical expenses tax offset in 2019. Currently, 20% of the eligible medical expense (in excess of $2,060 per annum) can be claimed as tax offset.
From 1 July 2013, to be eligible to claim the tax offset in the future income year, you must claim the offset on all medical expense for the 2012-13 income year and every consequent future income years (i.e.: Claim offset in 2013-14 to be eligible in 2014-15 income year).
Individuals who have expenses relating to disability aids, attendant care or aged care will continue to qualify for an offset up to 2019.
Medical expenses – tax offsets