Hello Readers,
Well it's June 30 and everyone wants to maximise their tax deductions. Now you may also be able to claim your wig or hair replacment to reduce your tax and effectively lower the cost of your wig or hair replacement – it's great news isn't it! We understand that this is in addition to any rebate may have received from your heath insurance provider (some are generous in this area), especially for women's hair loss and Alopecia Areata, Totalis and Universalis.
Our recommendation is for you to get advice from your accountant or tax adviser before you make such claims. Below is a summary of the tax law with relevant links – it may be the only time you enjoy reading tax law!!! Many thanks to Chel Campbell who did the background work on this from the Australian Alopecia Areata foundation (http://www.aaaf.org.au).
According to the Taxation Ruling TR93/34 you should be able to add the cost of your wig to your medical claims. Below are some quotes from the ATO website relating to the Income Tax: Medical Expense Rebate (Taxation Ruling TR93/34).
Section 159P allows a rebate for net medical expenses exceeding $1,000. Net medical expenses includes: payments for a 'medical or surgical appliance' prescribed by a legally qualified medical practitioner.
A 'medical or surgical appliance' for the purposes of paragraph (f) of the definition of 'medical expenses' in subsection 159P (4) is an instrument, apparatus or device which is:
a) Manufactured as; or
b) Distributed as; or
c) Generally recognised to be an aid to the function or capacity of a person with a disability or illness.
Examples of a 'medical or surgical appliance' include:
(m) Medical or surgical wigs for use by a person which is necessitated by loss of hair through sickness or disease (other than naturally occurring baldness) or the effects of the treatment of sickness or disease
Examples:
18. The following examples consider if the prescribed item is a 'medical or surgical appliance' within paragraph (f) of the definition of 'medical expenses' in subsection 159P(4).
Example 3.
23. A women suffers from a disease that causes baldness. She suffers extreme embarrassment and psychological stress associated with this baldness. The woman's doctor advises her that she should wear a wig.
24. If the wig is a medical or surgical wig and relieves potential incapacity it is a 'medical or surgical appliance'. A medical or surgical wig is made to measure and has a special type of construction.
These quotes are designed to act as a “teaser” or like 'movie trailer'. Something to get you excited about tax, and your new wig, hair system hair replacment or hair restoration process. For the full details follow the following link. In the meantime, I hope you can claim a little extra off your tax or it may enable you to get a higher quality wig, hair system or topette that you have always wanted.
