Medical expenses tax offset
The net medical expenses tax offset currently allows taxpayers to claim a tax offset of 20% of net unreimbursed medical expenses above $1,500. Eligible medical expenses include obstetrics, dental and optical expenses, laser eye surgery, medical aids and ongoing aged care fees.
This threshold will increase from 1 July 2010, and will be indexed to the Consumer Price Index from the following year. Although this change will negatively impact taxpayers who incur significant medical expenses during the year, it should be noted that the threshold has not increased since 2003.