From the 2002-03 income year, the threshold above which the medical expenses offset becomes payable will be increased from $1,250 to $1,500. The threshold was last increased in 1997.
The medical expenses offset will continue to be available to Australian residents and their dependants at a rate of 20 per cent of any net medical expenses above this threshold. The current range of `medical expenses' available under the offset has not been changed.
The medical expenses offset is available in addition to the 30 per cent private health insurance offset provided by the Government to assist taxpayers with the costs of medical expenses.