Click this link to open the information on Item T5 label X on the ATO website.
The Net Medical Expenses Tax Offset (NMETO) is an off-return offset that will be calculated by both the ATO and MYOB Tax. This will be included in the Notice of Assessment (NoA) provided by the ATO and the Taxation and Detailed Estimates provided in MYOB Tax.
This offset can only be claimed in the current year if you had expenses that relate to disability aids, attendant care or aged care where:
- Disability aids are items of property manufactured as, or generally recognised to be, an aid to the functional capacity of a person with a disability.
Attendant care are expenses relate to care and services provided to a person with certain disabilities to assist with everyday living. For example, the provision of personal assistance, home nursing, home maintenance, and domestic services to a person who is blind or permanently confined to bed or a wheelchair.
- Aged care expenses are services and accommodation provided by an approved aged care provider to a person who is a care recipient or continuing care recipient within the meaning of the Aged Care Act 1997.
This tax offset is income tested. The percentage of net expenses you can claim is determined by your Adjusted Taxable Income (ATI) and family status.
The ATO will work out your tax offset based on your ATI and family status.
|Family Status||ATI Threshold||What you can claim|
(single at 30 Jun 18 and no dependent children)
|$90,000 or less||20% of net medical expenses over $2,333|
|above $90,000||10% of net medical expenses over $5,504|
(with spouse at at 30 Jun 18, or dependent child/children at any time during the year, or both)
|$180,000 or less (plus $1,500 for each dependent child after the first)||20% of net medical expenses over $2,333|
|above $180,000 (plus $1,500 for each dependent child after the first)||10% of net medical expenses over $5,504|
15-320 Payments for medical expenses
15-325 Eligible medical expenses for offset
15-327 Eligible dependents for medical expenses offset