Generally No Tax Reason to Keep Receipts for Medical Expenses

The previous medical expenses tax offset of 20% of net qualifying expenditure over $2,265 (low income earners) or 10% of net qualifying expenditure over $5,343 (high income earners) no longer generally applies from 1 July 2015. This means there is now no tax reason to keep receipts for medical expenses and chemist bills etc., unless the new medical expenses offset applies. Receipts may still be needed for Medicare, health fund and other insurance claims.

The medical expense offset now only applies to payments for:

(a) An aid for a person with a disability; or
(b) Services rendered by a person as an attendant of a person with a disability; or
(c) Care provided by an approved provider (within the meaning of the Aged Care Act 1997) of a person who:

           (i) is approved as a care recipient under that Act; or
           (ii) is a continuing care recipient within the meaning of that Act.