Medical Expenses Offset

The Medical Expenses Offset allows you to claim a tax offset for a percentage of your net medical expenses.

In order to qualify for the offset, however, your medical expenses must be greater than the threshold set by the ATO (as shown in the table below).

Family Status: Adjusted Taxable Income (ATI): You Can Claim:
Single with no dependent children $90,000 or less 20% of net medical expenses over $2,218
Single with no dependent children above $90,000 10% of net medical expenses over $5,233
Family with a spouse, or dependent child(ren), or both at any point during the year $180,000* or less 20% of net medical expenses over $2,218
Family with a spouse, or dependent child(ren), or both at any point during the year above $180,000* 10% of net medical expenses over $5,233

* plus $1,500 for each dependent child after the first

Net medical expenses are expenses relating to an illness or operation paid to legally qualified doctors, nurses, chemists, or hospitals less any refunds you got, or could get, from Medicare or a private health insurer.

You can claim medical expenses for yourself, your spouse, or your children under 21 without regard for your incomes. You can also claim an offset for medical expenses for other children under 21 or students under 25 depending on their incomes as well as a child-housekeeper or invalid relative that you claim an offset for.

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