Announcements
Curious about the JobMaker Hiring Credit? Have a read about who is eligible and how to register.

ATO Community

Aged care deduction

This post is archived and may not be up-to-date.

I'm new

Views 920

Replies 2

Is the interest on a "refundable accomodation deposit" (R.A.D.) with an aged care facility tax deductable?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hello @Bunyip

 

Thanks for your question.

 

@macfanboy is correct as the 2018/2019 is the final year this offset can be claimed. Legislation passed in 2014 abolishes this offset from 1 July 2019.

 

Total net medical expenses for disability aids, attendant care or aged care.

 

You can only claim this offset if you had expenses that relate to disability aids, attendant care or aged care.

 

Residential aged care expenses and payments for in-home care must have been made to an approved care provider for personal or nursing care and accommodation in respect of an approved care recipient.

 

An approved care recipient is a person who has been assessed by the aged care assessment team (ACAT) as eligible for residential aged care or in-home aged care.

 

Residential aged care payments can be for:

  • daily fees
  • income or means tested daily care fees
  • extra service fees
  • accommodation charges
  • periodic payments of accommodation bonds
  • interest on an outstanding instalment of a lump sum accommodation bond
  • amounts drawn from a lump sum accommodation bond, and
  • daily accommodation payments.

 

Expenses which do not qualify as aged care medical expenses include:

  • lump sum payments of accommodation bonds or refundable accommodation deposits for residential aged care
  • interest payments derived by care providers from the investment of accommodation bonds or refundable deposits (because these are not payments for residential aged care)
  • expenses for people who were residents of a hostel before 1 October 1997 and who did not have a personal care subsidy or a respite care subsidy paid on their behalf at the personal care subsidy rate by the Commonwealth (unless they have subsequently been reassessed and approved as a care recipient or continuing care recipient under the Aged Care Act 1997).

Regards

 

LukeS

2 REPLIES 2

Taxicorn

Replies 0

@Bunyip 

 

It doesn't really matter if it was there is no Medical expense offset for 2019-2020.

 

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hello @Bunyip

 

Thanks for your question.

 

@macfanboy is correct as the 2018/2019 is the final year this offset can be claimed. Legislation passed in 2014 abolishes this offset from 1 July 2019.

 

Total net medical expenses for disability aids, attendant care or aged care.

 

You can only claim this offset if you had expenses that relate to disability aids, attendant care or aged care.

 

Residential aged care expenses and payments for in-home care must have been made to an approved care provider for personal or nursing care and accommodation in respect of an approved care recipient.

 

An approved care recipient is a person who has been assessed by the aged care assessment team (ACAT) as eligible for residential aged care or in-home aged care.

 

Residential aged care payments can be for:

  • daily fees
  • income or means tested daily care fees
  • extra service fees
  • accommodation charges
  • periodic payments of accommodation bonds
  • interest on an outstanding instalment of a lump sum accommodation bond
  • amounts drawn from a lump sum accommodation bond, and
  • daily accommodation payments.

 

Expenses which do not qualify as aged care medical expenses include:

  • lump sum payments of accommodation bonds or refundable accommodation deposits for residential aged care
  • interest payments derived by care providers from the investment of accommodation bonds or refundable deposits (because these are not payments for residential aged care)
  • expenses for people who were residents of a hostel before 1 October 1997 and who did not have a personal care subsidy or a respite care subsidy paid on their behalf at the personal care subsidy rate by the Commonwealth (unless they have subsequently been reassessed and approved as a care recipient or continuing care recipient under the Aged Care Act 1997).

Regards

 

LukeS