The government will be phasing out the net medical expenses tax offset
Net medical expenses are the total medical expenses, minus refunds from Medicare and private health insurers that an individual is entitled to receive.
From 1 July 2013, those taxpayers who received the offset in their 2012-13 income tax assessment will be eligible for the offset in the 2013-14 income year.
Similarly, only those who receive the offset in 2013-14 will be eligible to continue to receive the offset in 2014-15.
The changes will not apply to all taxpayers. The offset 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.