Net Medical Expenses Tax Offset Phase Out
In the 2013-14 Federal Budget the finance minister announced that it will phase out the net medical expenses tax offset and in the meantime, means tests will be applied to reduce the total rebates paid. At that time, the minister advised that as of July 1st 2015, these rebates would no longer exist. It appears that they do still but the hurdle rates and conditions are higher - see below.
As at July 10th 2015:
The PAYG tax offset for hearing technology/devices applies if you are a single person earning less than $90,000 or as a family earning less than $180,000. If these thresholds apply, you will receive 20% of your expenditure back, above total costs in that financial year over $2218.00, as a tax rebate but if you earn over these levels, the rebate reduces to 10% plus the expenditure threshold increases to $5233.00, therefore;
Single person earning <$90 000.00, spend over $2218.00 and receive 20% as a rebate
Family earning <$180 000.00, spend over $5233.00 and receive 20% as a rebate
Single person earning >$90 000.00, spend over $2218.00 and receive 10% as a rebate
Family earning >$180 000.00, spend over $5233.00 and receive 10% as a rebate
Example Scenario: Single person earning <$84k
Total medical devices expenditure of $7500.00
Minus the threshold of $2120.00 = $5380.00
Rebate of 20% = $1076.00
Note, this rebate is in addition to any private health rebate for which you are eligible, that ranges between $800 - $5000 dependent upon the plan.
Please use the following link to the ATO web site to find out more or take a look at the H&R Block page on this topic
Private Health Insurance
Depending on the level of health insurance cover you have, most health funds offer a rebate/s associated with the purchase of hearing instruments and, occasionally, also for the consultation fees. Unlike almost every other clinic, we ‘unbundle’ your account. This means that we separately itemise products and professional services, allowing you to make a claim on each.
Check Your Australian Health Insurance Fund Rebate Details for hearing aids with our free download at the bottom of this page.
Insure Your Hearing Aids
We recommend that all our clients specifically list their devices on their home contents insurance policy, ensuring they are regarded as “portables”. As expensive and very small items, they are worth insuring and we are happy to provide a valuation certificate if required.