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  • Updated:3 Aug 2006

05.Tax return

If your out-of-pocket medical expenses are over a specified limit — currently $1500 — within a financial year, you’re eligible for a tax offset.

To claim the medical expenses rebate in your tax return you’ll need to:

  • Calculate the total medical expenses you incurred for yourself and your dependants.
  • From this total figure deduct any refunds from Medicare, your health fund or any other reimbursements that relate to those expenses received during the financial year, to determine your out-of-pocket expenses.
  • You can then claim an offset of 20% of these expenses over the $1500 threshold.
  • You’ll need to keep all receipts, along with your Medicare financial tax statement, to prove your claim if the tax office asks you.

For more information
Call the ATO on 132 861 and follow the prompts.
Go to the ‘Individuals’ section of the Australian Taxation Office (ATO) website Click on ‘What you can claim’, ‘Tax offsets (rebates)’ and then ‘Medical expenses’.


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