The NMETO allows taxpayers to claim a tax offset for out-of pocket medical expenses incurred above a certain threshold. In the 2013–14 Federal Budget it was announced and subsequently legislated that the NMETO would be phased out, with transitional provisions for medical expenses relating to disability aids, attendant care or aged care expenses.
From 1 July 2013, taxpayers who received the NMETO in their 2012–13 income tax assessment will continue to be eligible for the offset for the 2013–14 financial year if they have eligible out-of-pocket medical expenses. 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. From 2015–16, NMETO will no longer be available.
NMETO will continue to be available for taxpayers with out-of pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019. The rationale for transitional arrangements for those with a disability or in residential aged care is that by 2019 Disability Care and proposed reforms to the aged care sector are expected to be fully operational.
For more information on this subject feel free to get in touch with us click here
To receive free updates on relevant information click here
To read more about specialised service offers for Financial Planning please click here
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us .