Tag Archive for: medical expense tax offset

Medicare levy, Medicare levy surcharge, private health insurance rebate, and medical expense deductions finally explained

Over the past year many people have been turning to Billings and Ellis for expert advice on the confusing interaction between the Medicare levy, the Medicare levy surcharge, private health insurance rebates and the ability to claim the medical expense offset.

This article attempts to explain each of these topics in plain language so that you can more easily structure your affairs with tax minimisation in mind.

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Medical deductions

Net medical expenses tax offset 2014 changes

The government has committed to phasing out this offset over a number of years.

A summary of the changes is as follows:

  • For the 2013/2014 financial year, the offset can only be claimed if you claimed the offset in the 2012/2013 financial year.
  • For the 2014/2015 financial year, the offset can only be claimed if you claimed the offset in the 2013/2014 financial year.
  • The 2014/2015 financial year is the final year that the offset can be claimed.

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