The ATO has reminded tax practitioners that the net medical expenses tax offset (NMETO) is being phased out. To be eligible for the NMETO for 2014-15, individual taxpayers must have received an amount of the tax offset in both of their 2012-13 and 2013-14 income tax assessments. The ATO says that if the taxpayer’s 2012-13 notice of assessment shows an amount of zero for NMETO, the taxpayer wouldn’t have received this offset in their income tax assessment and so are not eligible to make a claim in 2013-14 or 2014-15.

The eligibility rule for the NMETO does not apply to taxpayers with out-of-pocket medical expenses relating to disability aids, attendant care and aged care. The ATO says these expenses can continue to be claimed until 30 June 2019 in the Total net medical expenses label.

[LTN 44, 6/3/15]