ATO Interpretative Decision

ATO ID 2001/154 (Withdrawn)

Income Tax

• This ATO ID is withdrawn. Guidance on the Net Medical Expenses Tax Offset can be found at Medical expenses on the ATO website (QC 31918).
  This document has changed over time. View its history.

Issue

Are a freestanding overbed frame, mobile shower commode and dual valve high profile cushion medical or surgical appliances for the purposes of paragraph (f) of the definition of medical expenses in subsection 159P(4) of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

Yes. A freestanding overbed frame, mobile shower commode and dual valve high profile cushion are medical or surgical appliances for the purposes of paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936.

Facts

The taxpayer suffers from very poor circulation and limited movement, which are symptoms of a serious medical condition. The taxpayer is hospitalised as a result of complications associated with the medical condition, and during the period of hospitalisation, the taxpayer experiences severe bed sores.

Whilst in hospital the taxpayer uses a number of devices that assist with the taxpayer's mobility. Upon the taxpayer's release from hospital, the medical practitioner responsible for the taxpayer's treatment recommends that the taxpayer acquire these items for use at home. Accordingly, the taxpayer acquires these items from rehabilitation specialist distributors.

The first item is an overbed frame that provides a structure over the taxpayer's bed to assist the taxpayer to get in and out of bed. The freestanding overbed frame also helps stabilise the taxpayer in bed, so the taxpayer can perform simple functions when in bed.

The second item is a mobile shower commode. The mobile shower commode is used by the taxpayer for stability in and access to the shower.

The third item is a dual valve high profile cushion, which is fitted to the taxpayer's wheelchair. The cushion prevents sores forming by alleviating pressure against the taxpayer's skin and by stimulating circulation. The cushion also gives the taxpayer mobility as the taxpayer's skin is so sensitive, the taxpayer would not be able to use the wheelchair without the cushion.

Reasons For Decision

Subsection 159P(1) of the ITAA 1936 states, inter alia , that an amount paid by a taxpayer in the year of income as medical expenses less any amount paid to the taxpayer in respect of those medical expenses shall be treated as a rebatable amount in respect of that year of income. Paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 includes payments made in respect of a medical or surgical appliance prescribed by a legally qualified medical practitioner.

Taxation Ruling TR 93/34 explains the meaning of a 'medical or surgical appliance' for the purposes of paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936 as an instrument, apparatus or device which is manufactured as, distributed as or generally recognised to be an aid to the function or capacity of a person with a disability or an illness.

Paragraph 4 of TR 93/34 states that an appliance is an aid to function or capacity if it helps the person with the disability or illness perform the activities of daily living. The question of whether the appliance is an aid to function or capacity looks at the character of the appliance and not the purpose for which the appliance is prescribed or used.

The freestanding overbed frame and mobile shower commode are both devices that are used by the hospital with a view to preventing illness and facilitating rehabilitation by providing stability and assistance in movement. The items are clearly recognised as aids to the function or capacity of a person with a disability or illness. Accordingly, they qualify as medical or surgical appliances for the purposes of paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936.

As the taxpayer cannot use the wheelchair without the dual valve high profile cushion, the cushion is necessary for the taxpayer to benefit from the mobility offered by the wheelchair. It is recognised to be an aid to function and capacity of a person with a disability or an illness where that person would not be able to use the wheelchair without the cushion. As such, the dual valve high profile cushion would also qualify as a medical or surgical appliance for the purposes of paragraph (f) of the definition of medical expenses in subsection 159P(4) of the ITAA 1936.

Amendment History

Legislative References:
Income Tax Assessment Act 1936
   section 159P
   subsection 159P(1)

Case References:
FC of T v. Ildes
   88 ATC 4214
   (1988) 19 ATR 952

Related Public Rulings (including Determinations)
TR 93/34

Related ATO Interpretative Decisions
ATO ID 2001/155

Keywords
rebates and offsets
Deductions & expenses
Medical expenses
Medical expenses rebates
Medical & surgical appliances

Business Line:  Small Business/Individual Taxpayers

Date of publication:  1 August 2001

ISSN: 1445-2782