Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 (11 of 2014)

Schedule 3   Phase-out of rebate for medical expenses

Part 1   Main amendments

Income Tax Assessment Act 1936

1   Before subsection 159P(1)

Insert:

Phase-out of rebate for medical expenses

(1A) A taxpayer is not entitled to a rebate of tax under this section in respect of the 2019-20 year of income or a later year of income.

(1B) For the 2013-14 to 2018-19 years of income, an amount that would otherwise be paid as medical expenses is treated as not being paid as medical expenses unless the payment:

(a) relates to an aid for a person with a disability; or

(b) relates to services rendered by a person as an attendant of a person with a disability; or

(c) relates to care provided by an approved provider (within the meaning of the Aged Care Act 1997) of a person who:

(i) is approved as a care recipient under that Act; or

(ii) is a continuing care recipient within the meaning of that Act.

(1C) However, subsection (1B) does not apply to amounts paid in a year of income as medical expenses in respect of a taxpayer:

(a) for the 2013-14 year of income - if the taxpayer’s assessment for the 2012-13 year of income included an amount of rebate under this section that was greater than nil; and

(b) for the 2014-15 year of income - if the taxpayer’s assessment for both the 2012-13 and 2013-14 years of income included an amount of rebate under this section that was greater than nil.

(1D) Subsection (1B) also does not apply in working out a rebate of tax to which the trustee of a trust estate is entitled in respect of amounts paid in a year of income as medical expenses in respect of a beneficiary:

(a) for the 2013-14 year of income - if the trustee’s assessment for the 2012-13 year of income included an amount of rebate under this section in respect of the beneficiary that was greater than nil; and

(b) for the 2014-15 year of income - if the trustee’s assessment for both the 2012-13 and 2013-14 years of income included an amount of rebate under this section in respect of the beneficiary that was greater than nil.