Monday, July 1, 2013

Tax time and medical expenses

For those of you in Australia and keeping up to date with tax laws, you will know that as of today - 1st July 2013, the Australian government has done away with the net medical expenses tax offset.  The tax offset helped people who spent a large amount of money on medical expenses during the tax year, by providing a rebate of either 20% or 10% over a set threshold - depending on your income.  The offset had been declining over the years, so I guess it was inevitable it would go - however this will affect a lot of people, especially pensioners who spend a lot of money on medical services.

What a lot of people don't know (and I only just found this out myself) is that while as of this year it has been scrapped, if you claimed the offset in the 2012-2013 tax year, you can also claim it in 2013-2014. And if (and only if) you also claim it in 2013-2014, you will be able to claim for one final year in 2014-2015.  This is great news for people like myself who are due to spend another $20-$30K or so.  It won't stop the government further raising the threshold and lowering the rebate, but at least it's something for the next couple of years.

That's it - just a quick post really, but useful information for those who need it.  And remember, if you did claim it in 2012-2013, ensure you continue to keep good track of your medical expenses.

1 comment:

  1. How's everything coming along? It's been a while since your last post...