Is paediatric OT tax deductible in Australia?

Understanding your options for paediatric OT costs

The removal of the medical expenses tax offset in 2019 means most out-of-pocket occupational therapy costs cannot be claimed as tax deductions. This applies to private OT sessions not covered by other schemes.

However, you may access paediatric OT through other funded pathways:

**Medicare rebates**: If your child's GP provides a referral under the Enhanced Primary Care (EPC) items or Chronic Disease Management (CDM) items, you can access Medicare-rebated OT sessions. The rebate amount varies depending on the item number and your OT's qualifications. You'll typically pay a gap fee on top of the Medicare rebate.

**NDIS (National Disability Insurance Scheme)**: If your child is aged under 65 and has a permanent disability, developmental delay, or psychosocial disability, they may be eligible for NDIS funding. The NDIS covers OT as a support, with costs varying based on your child's plan. The 2025-26 NDIS Pricing Arrangements set standard rates for OT services.

**State-based schemes**: Some states offer early intervention services for children under 6 with developmental concerns. These may include OT at no cost or reduced cost.

**Private costs**: If paying privately without Medicare or NDIS support, these expenses cannot be claimed as tax deductions. Session costs typically range from $80–$200+ depending on your OT's experience and location.

**What to do next**: Speak with your child's GP about Medicare referral options. If you believe your child may have a disability or developmental delay, contact the NDIS (1800 800 110) to discuss eligibility. For tax-specific questions about your circumstances, consult a registered tax agent or the ATO directly.

Keep records of all OT invoices and receipts in case your situation changes or you need documentation for other support applications.