Medical Expenses 2012

Coming to an another end of the financial year we all are getting frazzled trying to organise all our financial records, so that we can complete our tax return as soon as possible and know that we do not need to worry about it for another year. But this process should not be rushed as some deductions might be missed.

One of the biggest expenses we at Small Business Works have found that the clients are forgetting to notice or make a claim for are medical expenses accrued over the year. For the financial year ending 30th June 2011, if the medical expenses incurred exceed $2000 after private health insurance and Medicare claims you may be eligible to claim 20% on the amounts over $2000.

Medical expenses accrued through out the year can be made up or your own, your spouses and any of your own children under the age of 21. Do note that either you OR your spouse can claim, not both.

Some examples of the eligible medical expenses that can be claimed are
•    Dentist, orthodontist
•    Medicines (pain killers, antibiotics etc)
•    Opticians or Optometrists (including the costs associated with prescription glasses or contact lenses)
•    Any treatment which has been referred by the doctor (eg. Acupuncture, massage, etc.)
•    Laser eye surgery
•    Artificial Limbs and hearing aids

To be eligible to make claim of this deduction the person must be an Australian resident.

Please make note that some medical expenses are not eligible.
•    Any sort of cosmetic surgery (unless you are a burn victim who requires skin graphs and there are also a few other exceptions to this rule)
•    Therapeutic treatment which you have not been referred to by your doctor.
•    Private health insurance
•    Funeral expenses

If you need any further assistance or clarification please do not hesitate to give us a call on 1800 556 122, one of our accountants will be more than glad to answer any questions you might have regarding this matter or any other issues.