Net Medical Expenses tax offset

The high income earners are facing the increased premium to the private health insurance now they will face a lower tax offset available to them under the net medical expenses.

For the 2011 year, the tax offset is 20% of the net medical expenses in excess of $2000

For the 2012 year, the tax offset is 20% of the net medical expenses in excess of $2060

Effective from 1 July 2012, the tax offset will be different for those whose adjusted income is above the Medicare Levy Surcharge threshold ($84,000 for singles and $168,000 for families for 2012-2013 year) and below.

For those above the threshold, the tax offset will be 10% of the $5000. People below the threshold will be unaffected.