Issue
Are travel and accommodation expenses incurred in order to obtain medical treatment included within the definition of medical expenses as defined in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Decision
No. Travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Facts
The taxpayer who resides in a country area suffers from a medical condition, treatment for which is only available in a city.
The taxpayer incurs travel and accommodation expenses in order to receive such medical treatment.
Reasons for Decision
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.
Subsection 159P(4) of the ITAA 1936 defines medical expenses for the purposes of the medical expenses tax offset. The definition does not include the costs of travel or accommodation to obtain medical treatment. Furthermore, as held by the Administrative Appeals Tribunal in Case R12 84 ATC 165; (1984) 27 CTBR (NS) Case 63 , travelling expenses, while necessary to receive treatment, were not in respect of that treatment.
Accordingly, travel and accommodation expenses incurred in order to obtain medical treatment are not medical expenses as defined in subsection 159P(4) of the ITAA 1936.
Amendment History
Date of amendment Part Comment 31 January 2014 Reasons for Decision, Keywords Amended for clarity Case References Amended for style adherence
Date of amendment | Part | Comment
31 January 2014 | Reasons for Decision, Keywords | Amended for clarity
Case References | Amended for style adherence