Tax Laws Amendment (2012 Measures No. 6) Act 2013 (84 of 2013)
Schedule 5 Rebate for medical expenses
Income Tax Assessment Act 1936
20 At the end of Subdivision A of Division 17 of Part III
Add:
159Q Rebate for medical expenses - phase-in limits
When medical expense rebate higher phase-in limit applies
(1) The medical expense rebate higher phase-in limit applies if:
(a) an item of the following table applies to the following individual (the principal individual ) for the year of income:
(i) other than in a case to which subparagraph (ii) applies - the taxpayer;
(ii) in the case of an assessment mentioned in paragraph 159P(3)(a) - the beneficiary; and
(b) the amount mentioned in column 2 of the item exceeds the threshold mentioned in column 3 of the item.
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When medical expense rebate higher phase-in limit applies |
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Item |
Column 1 This item applies to the principal individual for a year of income if: |
Column 2 Income amount |
Column 3 Threshold |
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1 |
on the last day of the year, the principal individual is married (within the meaning of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999). |
the total of: (a) the principal individual's adjusted taxable income for rebates for the year; and (b) the adjusted taxable income for rebates for the year of the individual to whom the principal individual is married |
the principal individual's family tier 1 threshold for the year |
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2 |
(a) item 1 does not apply; and (b) on any day in the year, the principal individual has one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999). |
the principal individual's adjusted taxable income for rebates for the year |
the principal individual's family tier 1 threshold for the year |
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3 |
items 1 and 2 do not apply. |
the principal individual's adjusted taxable income for rebates for the year |
the principal individual's singles tier 1 threshold for the year |
(2) The reference in item 1 of the table in subsection (1) to the last day of the year is treated as being a reference to the day the principal individual dies, if the principal individual dies during the year.
(3) Despite section 5 of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999, for the purposes of item 2 of the table in subsection (1) of this section, an individual is treated as not being a dependant of the principal individual on a day if the individual is married (within the meaning of that Act) to the principal individual on that day.
(4) In the case of an assessment mentioned in paragraph 159P(3)(a), treat a reference in the table in subsection (1) to the principal individual's adjusted taxable income for rebates for the year as being a reference to the amount in respect of which the trustee is liable to be assessed, as mentioned in that paragraph.
Phase-in limits
(5) The medical expense rebate higher phase-in limit is $5,000.
Note: This amount is indexed annually: see section 159HA.
(6) The medical expense rebate lower phase-in limit is $2,000.
Note: This amount is indexed annually: see section 159HA.