Medical expenses tax offset - maintenance of wheelchairs

Does expenditure on wheelchair maintenance qualify as a medical expense as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?

Yes, the cost of maintaining a wheelchair, including the replacement of parts, is a medical expense as defined in subsection 159P(4) of the ITAA 1936.

Section 159P of the ITAA 1936 provides for a rebate (medical expenses tax offset) to a taxpayer whose net medical expenses in the year of income exceed the threshold dollar amount specified in the section. The amount of the tax offset is equal to 20% of the expenses that exceed the threshold.

Paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 includes in the definition of medical expense, payments ' in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner' (emphasis added).

Taxation Ruling TR 93/34 Income tax: medical expense rebate - meaning of medical or surgical appliance includes wheelchairs as an example of a medical or surgical appliance for the purposes of the medical expenses tax offset.

In Case F25 74 ATC 130; (1974) 19 CTBR (NS) 288 Case 43 , the Board of Review stated that the phrase '"payments in respect of" is wide enough to cover maintenance or repair as well as its original cost'. When applied to wheelchairs, this encompasses maintenance and replacement of parts; for example, batteries, electronic and motorised parts.

Date of amendment Part Comment 29 November 2013 Decision, Facts, Reasons for Decision, Legislative references, Keywords Amended for clarity, to reconcile current terminology of tax offset with the legislative wording of section 159P of the ITAA 1936 and to follow the ATO Standards for citations and references and ATOI D guidelines.

Date of amendment | Part | Comment

29 November 2013 | Decision, Facts, Reasons for Decision, Legislative references, Keywords | Amended for clarity, to reconcile current terminology of tax offset with the legislative wording of section 159P of the ITAA 1936 and to follow the ATO Standards for citations and references and ATOI D guidelines.