Which Medical Expenses Are Tax Deductible?

The deadline for lodging this year’s tax return is coming closer and many of those who haven’t lodged their tax return yet are trying to figure out what they can claim as tax deductions. While we all know that we can claim work-related costs as tax deductions, many aren’t sure if certain medical expenses can also be claimed on a tax return. If you’re wondering what kind of medical expenses are tax-deductible and how much you might be able to get back, we can help.

Calculator And Medical Billing Statement

Are Medical Expenses Tax-deductible?

In previous years, you were able to claim out of pocket expenses for certain medical expenses in your tax return. As of 1 July 2019, the ATO has stated that medical expenses are no longer claimable as a tax deduction. However, you may still be able to claim medical expenses for previous tax years between 2015-2016 and 2018-2019.

Which Medical Expenses Are Tax-deductible?

If you do have some medical expenses from a previous eligible year that you would like to claim for income years from 2015-2016 to 2018-2019, you can claim a percentage of the following:

  • Aged care expenses
  • Disability aids
  • Attendant care

You are allowed to claim the total eligible net expenses, minus any refunds that you might receive from your private health insurer or the NDIS (National Disability Insurance Scheme).

Which Medical Expenses Aren't Tax-deductible?

Unfortunately, if your medical expenses are not related to aged care, disability care or attendant care expenses, they can not be included as part of your tax deductions.

Are There Any Special Cases?

From the 2019-2020 tax year, the medical expense tax offset has been phased out, which means that out of pocket medical expenses are no longer eligible to be claimed. Only previous expenses that fall in the eligible periods are able to be claimed.

How Much Can Be Claimed?

The percentage of your medical expenses that you can claim back will depend on how much you earn, how much your out-of-pocket expenses were and whether or not you have a spouse. To see how much might be claimable, you can take a look at the ATOs medical expenses tax offset calculator. Alternatively, if you want help with figuring out how much you might be eligible for, you can always utilise the skills of a licensed accountant who will be able to give you a definitive figure.

How Do You Go About Claiming?

You can either claim online when you’re submitting your previous years’ tax refunds and include the information as part of your deductions, or you can get your accountant to help you with claiming the expenses.

Why You Should Get A Tax Accountant To Help You?

The world of tax returns and how best to claim expenses can be confusing at the best of times. If you want to be sure that your tax returns are being completed properly and your previous medical expenses have been claimed correctly, you should always utilise the services of a professional tax accountant.

Get in touch with us today and we can help you complete your tax return in a swift and professional manner.

Contact Us

Do you still have questions about claiming medical expenses? Feel free to give us a call on 1800 810 247 and we can answer any queries you might have.


Anthony McPhee

Anthony McPhee, Principal

B.Bus (Accy) QUT | FCPA, SSA (SMSF Specialist Advisor with the SMSF Association) & Registered Tax Agent

Anthony has over 25 years accountancy, taxation and superannuation (SMSF) experience. He eagerly welcomes a challenge and his passion is in small business accounting, superannuation, consulting and taxation advice. He provides real business benefits for each of his clients and is well regarded for his succinct and accurate accounting skills. Anthony is also a self-managed superannuation fund (SMSF) specialist with Australia’s leading SMSF body, The SMSF Association.

Learn more about Anthony.

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