Medical Expenses Rebate to be phased out
In the past as you may all know, you can claim the medical expenses rebate on any out of pocket medical expenses over $2,160. As part of the Federal Budget last year in May, this was all changed.
The rebate still exists for the 2013/14 year, but only if you meet one of the following criteria:
- You claimed the medical expenses rebate in the 2013/13 year
- out-of-pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.
Now, if you are eligible for the rebate in the 2013/14 then you can keep claiming it until 2019. The one year that you stop claiming then you can no longer claim the rebate as this will be phased out by 2019.
Please note that the medical expenses rebate is also means tested. The more you earn the bigger the threshold. So in other words the standard threshold is $2,160 but if you are single and your income is over $88,000 then your threshold bumps up to $5,100 and your rebate is 10% instead of 20%. Below please find the table from the ATO.
|Family status||ATI threshold||What can I claim?|
(single at 30 June 2014 and no dependent children)
|$88,000 or less||20% of net medical expenses over $2,162|
|above $88,000||10% of net medical expenses over $5,100|
(with a spouse at 30 June 2014, or dependent children at any time during the year, or both)
|$176,000* or less||20% of net medical expenses over $2,162|
|above $176,000*||10% of net medical expenses over $5,100|