Medical tax credits

One of the aspects of the budget that may affect the public the most is the decision to use medical tax credits to fund the National Health Insurance programme.

“Over the next three years, below-inflation increases in medical tax credits will help government to fund the rollout of national health insurance. The medical tax credit will be reviewed after the Davis Tax Committee presents its recommendations,” says Gordan.

Medical Tax Credit Table 2017/18 2018/19
Member R303 R 310
First beneficiary R303 R 310
Additional beneficiaries R204 R209
Family of four R1014 R1038
Family of four annual credit R12 168 R12 456


“The medical tax credit consists of two components; medical scheme fees for approved medical scheme contributions and additional medical expenses for out-of-pocket medical payments. Government is concerned that some taxpayers may be claiming this credit more than once. For example, adult children jointly contributing to their elderly parent’s medical scheme. Where taxpayers carry a share of the medical scheme, contribution or medical cost, it is proposed that the medical tax credit should also be apportioned between the various contributors,” concludes Gordan.

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