Personal attention, business expertise:
the accountancy firm that puts your goals first

Home >  Blog >  Net Medical Expenses Tax Offset Phase Out

Net Medical Expenses Tax Offset Phase Out

Posted on 26 June 2013


What does this mean for you?

As part of the 2013-14 Budget the Government announced that it will gradually phase out the Net Medical Expenses Tax Offset (NMETO) with a "use it or lose it" system.

This will mean if you do not claim the NMETO in your 2012-13 tax return, you will not be eligible for the offset in any future year.

If you received the NMETO in your 2012-13 tax return, you will be eligible to receive the offset for all eligible out-of-pocket medical expenses in your 2013-14 tax return.  Similarly, those who receive the tax offset in their 2013-14 tax return will continue to be eligible for the offset in 2014-15.

The MNETO will cease for all eligible out-of-pocket medical expenses on 30 June 2015. The changes do not apply to all taxpayers – the offset will continue to apply to eligible out-of-pocket expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.

There is also a change to the thresholds for singles with a taxable income greater than $84,000 and families with a combined taxable income of over $168,000. Taxpayers under the new thresholds will continue to receive a 20% rebate on expenses over $2,120, and those with a higher income will be limited to a 10% claim on expenses over $5,000.

We recommend that you review your 2013 expenses as even a minor claim slightly over the threshold will keep you eligible for future years NMETO if your situation changes and your expenses increase.

With only a few days left of the financial year it may be worthwhile pre-paying a medical expense such as Orthodontist fees. For some clients the phase out will have little effect whereas for others a small amount of planning on the final days of 2013 could reap benefits in the future.

Please contact our office if you have any questions.

Tags: NMETO Medical Planning 2013 Admin Compliance Tax Obligations ATO Strategy
Igniciomigb 2462 days ago
cialis without prescription [] ? Find out the truth right here.,the best value|Find out the effective way of treating ED. Visit cialis tadalafil [] for an extended period?The lowest prices to,of real pharmaciesWith offers from online pharmacies you can buy generic cialis online []
ahosntutrt 2412 days ago
awnndbmefsnbobttpd, gkvaxwfgmq [] , [url=]pzttmkoiic[/url], gkvaxwfgmq
Upcyknk 12 days ago
online pharmacy canadian pharmacy online canadian pharmacy [] canadian drugs online
Koreytooro 5 days ago
kamagra exact: kamagra sti disease kamagra oral jelly 100mg kamagra oral jelly 100 mg gel

Post comment

Visit us at - 90B King William Road Goodwood SA 5034
(please click for a larger map). 7077 2877 Tell a FriendPrintBookmark SiteLinkedInFacebook