The Government Mon 29.10.2012, released exposure draft legislation which proposes to implement the 2012 Budget announcement to introduce a means test for the net medical expenses tax offset from 1 July 2012.
Under the proposed new means test, people with adjusted taxable income above the Medicare levy surcharge thresholds ($84,000 for singles and $168,000 for couples or families in 2012-13), the amount above which a taxpayer may claim the medical expenses offset will be increased to $5,000 (indexed annually thereafter). The rate of offset will be reduced to 10% of eligible out-of-pocket expenses incurred above the $5,000 claim amount. People with income below the income thresholds will be unaffected.
COMMENTS are due by 9 November 2012
[LTN 209, 29/10]