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.

(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.