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Article ID: 37933

Accountants Office Suite
Accountants Enterprise Suite
Australia
AO Tax (AU)
AE Tax Series 6 & 8 (AU)
AE Tax (AU)

ARTICLE LAST UPDATED: 25/05/2017 1:31:00 PM

The Net Medical Expenses Tax Offset (NMETO) is income tested. If you're eligible, the percentage that the offset calculation uses is decided based on your Adjusted Taxable Income (ATI) and family status.

As the NMETO is being phased out, from the 2015-2016 tax year until the 2018-2019 tax year, claims for this offset are restricted to eligible medical expenses:

  • Disability aids
  • Attendant care
  • Aged care.

The formula for calculating the Eligible Net Medical Expenses that are displayed in the return is:

The Eligible Medical Expense less any refunds received from the following sources:

  • Medicare
  • National Disability Insurance Scheme (NDIS) and
  • Private Health Insurers.

MYOB Tax has a worksheet with these elements and this article will explain how to use the software correctly.

If you use the pre-fill data from the ATO Portal, there will be no pre-fill available from Medicare Australia.

Data entry: Item T5 total net medical expenses

 

At Item T5 - Total net medical expenses for disability aids, attendant care or aged care, open and complete the worksheet (grid) at this item.

If the taxpayer has expenses that form part of the calculation for this offset, acknowledge the payment of eligible expenses (i.e. expenses relating to disability aids, attendant care and aged care.)

To complete the worksheet grid
  1. In the 2016 Individual Tax Return, click the Tax offsets tab.
  2. Scroll down to Item T5 - Total net medical expenses for disability aids, attendant care or aged care.
  3. Click Label X. The Net medical expenses for disability aids, attendant care or aged care grid displays.

  4. To enable entering data into the grid, select the checkbox to acknowledge that the taxpayer has paid for these eligible medical expenses.

  5. Ensure that the refund received column contains the total sum of all refunds received from Medicare, the NDIS and private health insurers.
  6. Click OK. The grid closes and the value of Eligible Net Medical Expenses is integrated into the return and appears at Item T5 Label X

  7. Press F4 for The NMETO to display in the tax estimate.

MYOB INTERNAL STAFF ONLY

Note the following claim table thresholds for the 2016 NMETO claim.