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Click this link to open the information on Item T5 label X on the ATO website.

 

To complete the NMETO grid

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.

How much can I claim?
Family StatusATI ThresholdWhat you can claim
Single
(single at 30 Jun 18 and no dependent children)
$90,000 or less20% of net medical expenses over $2,333
above $90,00010% of net medical expenses over $5,504
Family
(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

 

CCH References

15-320 Payments for medical expenses

15-325 Eligible medical expenses for offset

15-327 Eligible dependents for medical expenses offset