Issue
Is the taxpayer entitled to claim a deduction for medical expenses that he/she has incurred under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The medical expenses are not deductible under section 8-1 of the ITAA 1997 as they are private in nature.
Facts
The taxpayer is currently receiving a disability benefit.
The insurance company requires the taxpayer to supply a doctor's certificate each month indicating the condition of his/her disability. This determines if the taxpayer's disability payment is to continue. If the doctor's certificate was not received the disability benefit would automatically cease.
The taxpayer seeks to claim an income tax deduction for the net medical expenses, ie. the difference between the doctor's fee paid and the Medicare Rebate received from Medicare.
Reasons for Decision
The deductibility of expenses associated with personal medical treatment was considered in Rossitto & Federal Commissioner of Taxation , Re; AAT Case 12 ,821 (1998) 39 ATR 1019; 98 ATC 2093. They were held to be of a private nature and as such, not deductible.
Medical expenses are considered to be of a private or domestic nature. Paragraph 8-1(2)(b) of the ITAA 1997 would preclude deductibility of the net doctor's fees.