Medical Expenses Tax Deductible In Australia?

Medical Expenses Tax Deductible in Australia

Have you ever wondered if those medical expenses could be more than just a hit to your wallet? The Australian Taxation Office (ATO) once allowed the claiming of out-of-pocket expenses for specific medical costs in your tax return, but is this still the case? As of July 1, 2019, the ATO has altered the landscape. However, there’s a catch; you might still be eligible to claim expenses for previous tax years ranging from 2015-2016 to 2018-2019. What falls under the umbrella of claimable expenses, and what doesn’t? Let’s explore the ins and outs of medical expenses and tax deductions.

What Medical Expenses Can You Claim?

In the past, you could claim certain medical expenses in your tax return, but the rules have shifted. Are you wondering if your aged care, disability aids, or attendant care expenses qualify for a tax deduction? The eligibility criteria have nuances, and understanding them is crucial. The ATO has phased out the medical expense tax offset from the 2019-2020 tax year onwards. However, if you incurred eligible expenses in the period between 2015-2016 and 2018-2019, there might be room for tax relief.

Exploring Claimable Expenses – What’s In and What’s Out?

Now, let’s delve into the specifics. What medical expenses can you claim, and what’s off the table? Aged care expenses, disability aids, and attendant care are potential candidates for a tax deduction. However, it’s crucial to note that not all medical expenses fall under the tax-deductible umbrella. If your medical costs don’t align with aged care, disability care, or attendant care, claiming them might not be an option.

How to Calculate Your Claimable Amount?

When we talk of claiming medical expenses, an income test that influences the percentage you can claim. The calculation involves factors like adjusted taxable income (ATI) and family status. To simplify this process, the ATO offers a medical expenses tax offset calculator. It’s a handy tool to estimate the amount you might be entitled to for the income years spanning 2015-2016 to 2018-2019.

Claiming Process – DIY or Professional Assistance?

So, how do you go about claiming these expenses? Whether you choose to claim online during your tax return submission or seek the expertise of a tax accountant, the process requires attention to detail. The ATO has set specific guidelines for documentation, including receipts or documents showcasing the medical expenses you intend to claim. This could range from payments for prosthetics or wheelchairs to statements from approved care providers for in-home care expenses.

What’s the Present Scenario? – Phased-Out Tax Offset and Future Implications

While the medical expense tax offset has faded into history from the 2019-2020 tax year onward, the implications of previous eligible expenses linger. Whether you’re a DIY enthusiast in handling your tax returns or prefer the expertise of a tax accountant, the choice is yours. The world of tax returns can be complex, and seeking professional assistance ensures accurate claims and compliance with regulations.


Medical expenses and tax deductions are ever-evolving. If you find yourself wondering about the eligibility of your past medical expenses for a tax deduction, this blog is your guide to understanding the intricacies of the process. And if you are struggling with medical expenses being tax deductible or not, you may consult KPG Taxation. They have expert tax accountants who can help you guide you on minimising tax liabilities related to medical expenses so that you can remain stress-free.

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