Medical costs may include:

• Payments to doctors, nurses, chemists, hospitals, dentists, optometrists or opticians
• Artificial teeth, eyes, limbs and surgical appliances
• Glasses and hearing aides, medical aids prescribed (could include a wheelchair/motorised scooter)
• Costs of a guide dog or an attendant for an invalid.
• Fees of residential care in a nursing home, when care is assessed at levels 1 to 7 (which is the large majority). 

Medical costs do not include:

• Expenses incidental to obtaining medical treatment (e.g. travel or accommodation)
• Contributions to medical or hospital benefits funds or to health insurance providers
• An ex-spouse (once divorced) medical costs.
• Lump sum payments of accommodation bonds
• Cosmetic expenses if there is no Medicare rebate or purely cosmetic dental (see Cosmetic Procedures no Longer Qualify for Medical Expenses Offset)