If the main source of income is income protection insurance and they require reports from GP and other specialists for the ongoing payment of the benefit, can these consultations be claimed against the income?
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Hi @blackcow,
No, these expenses are not deductible.
Even though the reports are required to continue receiving the income protection payments, the underlying cost is still for medical consultations.
Medical expenses are considered private in nature, even when:
- they are required by the insurer
- they relate to income‑related payments.
Private ruling for this individual indicates that these expenses are deductible
1052464406097 | Legal database
From the ruling
"Generally medical expenses have no direct connection to the gaining or producing of assessable income and a deduction is not allowable. Medical expenses for treatment and rehabilitation have a private character, even if they are a requirement for receiving assessable income. Subsection 8-1 (2) of the ITAA 1997 states that you cannot deduct a loss or outgoing if it is of a private or domestic nature.
However, where it can be shown that a medical expense has the required nexus between the expense and earning of assessable income, the expense may be deductible. Where the expense is required for payment of income protection benefits, there is a direct connection between the expense and the earning of assessable income."
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