Last updated on February 12th, 2015 at 12:07 pm
Being a practical type, I like to pass on potentially helpful information.
Now I am no expert in accounting so I see my accountant Arthur who asks me every year about my medical expenses, as there is a possibility of making a claim, if you reach a certain threshold.
This means if you are married with a couple of kids then there is a high probability of you being able to easily meet this limit.
Marriage therapy and individual counselling are classified as acceptable medical expenses. It pays to keep your receipts!
Click here to read on…
What I am referring to is the net medical expenses tax offset (NMETO).
The Australian Tax Office offers the NMETO which allows Australian residents to annually claim a tax rebate to offset out-of-pocket medical expenses incurred above a certain threshold. The threshold is currently set at $5,000 for the 2012/13 income year. Net medical expenses are out-of-pocket medical expenses incurred minus any refunds received from Medicare or a private health insurer.
I’m sure you’ll agree anything that helps you pay less tax is a good thing!
Medical expenses include payments to ‘allied health providers’. Psychologists are classified as allied health providers.
Now for the not so good news.
The government is phasing the NMETO out.
Here is more information: http://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-individuals/Net-medical-expenses-tax-offset-phase-out/
Please check with your accountant or financial adviser to confirm your eligibility this tax year.
Good luck and best Wishes Philipa