The NMETO provides taxpayers with a non-refundable tax offset for eligible out-of-pocket medical expenses that exceed the NMETO claim threshold.
The previous Government announced as part of the 2013-14 Federal Budget that it will phase-out the NMETO from 1 July 2013.
There are transitional arrangements in place as follows:
- Those taxpayers who received the offset in their 2012–13 income tax assessment will continue to be eligible for the offset for the 2013–14 income year if they have eligible out-of-pocket medical expenses above the relevant claim threshold. Similarly, those who receive the tax offset in their 2013–14 income tax assessment will continue to be eligible for the offset in 2014–15.
- The NMETO will be available for out-of-pocket medical expenses from 2012-13 up until the 2018-19 income year only for medical expenses relating to:
- Disability aids
- Attendant care
- Aged care.
The tax offset will cease on 1 July 2019.
If you think you may be entitled to the NMETO in the 2012-13 income year, then please contact us so that we can discuss your circumstances and assess whether the transitional arrangements apply to you.
This article was written by Rachel Hunter, a Senior Accountant at our Burleigh Office. Rachel completed her Bachelor of Business at Griffith University and has been working with us since November 2011. Rachel enjoys weight training, obstacle courses and spending time with her husband, Mark and her two young children, Joel and Chloe.