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Danielle234(Initiate)Initiate
14 Aug 2023

Hello, I am currently receiving income protection payments (not workers compensation) for a cancer diagnosis. I can see from another post, that medical expenses are tax deductible when attending an appointment to receive the reports required to qualify for income protection and the travel to these appointments. My question is about my other medical expenses for various appointments, hospital excess, surgery fees, pharmacy and travel costs. If I wasn't sick and off work, I wouldn't have these costs and I wouldn't qualify for income protection payments, therefore do these items directly relate to producing "income"? Are they tax deductible?

2,647 views
5 replies
2,647 views
5 replies

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Bruce4Tax(Taxicorn)Taxicorn
15 Aug 2023

If I wasn't sick and off work, I wouldn't have these costs and I wouldn't qualify for income protection payments, therefore do these items directly relate to producing "income"? Are they tax deductible?


No - because the expenses are not necessarily incurred.


IP insurance would be paid to you whether the expenses were incurred or not.


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TonyATO(Community Support)Community Support
15 Aug 2023

Hello @@Danielle234


Wish we could give you a different answer but the out-of-pocket expenses you've mentioned (appointments, hospital excess, surgery fees etc) are not claimable. They would have to be claimed through health insurance or Medicare.

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Danielle234(Initiate)Initiate
24 Aug 2023

Thank you for clarifying! How do I determine which ones are deductible? Because some of the reports I get for income protection purposes I get because I am a patient who pays for the specified number of appointments for that specialist? I.e if there's not one particular appointment I have specifically booked the completion of paperwork but the specialist completes the paperwork because I am seeing them weekly.

Also sometimes the income protection require the surgery reports and notes from the specialists after the fact but they wouldn't be able to access these if I hadn't first paid for the procedure/appointments.

CatherineATO(Community Support)Community Support
25 Aug 2023

Hey @Danielle234!


We understand, however, these aren't items that are able to claimed in terms of tax. Medicare etc are the ones that would be better to approach for advice.


We wish you all the best for your journey!

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
15 Aug 2023

If I wasn't sick and off work, I wouldn't have these costs and I wouldn't qualify for income protection payments, therefore do these items directly relate to producing "income"? Are they tax deductible?


No - because the expenses are not necessarily incurred.


IP insurance would be paid to you whether the expenses were incurred or not.


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Are medical and travel expenses tax deductible while receiving income protection payments? | ATO Community