10 Tax Tips your Medical Practice can’t afford to Ignore


Australian medical practitioners earn what most would classify as a decent amount of money, and as most Australians know, the more you earn, the more you have to “remit to the powers that be.

The relationship between Australian caregivers and the Australian taxation authority is a tumultuous one to say the least.

Many of us are left disappointed and a little frustrated after every “pay-day”. It should come as no surprise to us as doctors, nurses and primary caregivers earn more than most of the general public.

The good news of this matter is that there are multiple tax deductions that most people do not know about, there are so many deductions that at least a few should apply to you.

In the spirit of helping out, we’ve compiled a list of the best tax tips and deductions that medical professionals cannot afford to ignore any longer.

  1.  Cost of managing your tax affairs:

This is quite simply the most straight forward deduction you can make and it applies to most of us.

Did you make use of any medical accounting tax agent while preparing your tax return last year? If your answer is yes, then you can claim the amount you paid on the return you file this year.

  1.    Cost of continuing education

The medical field is one of those fields that require constant education and re-education, each and every practitioner that wants to get from point A to B needs to invest heavily in education.

The good news is that you can also request for a tax break on expenses associated with your education such as fees, travel costs, clinical materials and everything in between.

  1.    Cost of maintaining a vehicle and travel expenses

If your medical practice requires you to be on the road constantly for special functions and work then you may claim that on your tax return.

If you make use of your personal vehicle for professional travel you can claim the costs associated with such travels on your tax return, make sure that you keep a record of when your personal vehicle served professional purposes so that your claim can be valid.

  1.    Insurance

Every single doctor is required to purchase what is known as professional indemnity insurance.

Unlike most other forms of professional insurance, this cost can be reported as a tax deduction.

This is an ideal way for you to save some money this year.

  1.    Union membership fees

If you happen to be part of a union that requires you to pay membership fees that relate directly to your current occupation, then the membership fees can be claimed as a tax deduction.

The best part of this deduction is that most membership associations are usually willing to assist you with an official receipt that’ll assist your claim for ma deduction.

  1.    Tax-friendly investments:

Due to the exorbitant tax obligations that doctors are saddled with, they are usually on the prowl and looking for investments that offer a quantifiable tax advantage.

There are a plethora of investments available to medical practitioners that offer both short and long term tax relief, our advice to you would be to be careful when investing for tax purposes.

  1.    Subscriptions:

This tax deduction is aimed at Nurses and Midwives, those of you that subscribe to nursing related journals, writings, books and magazines that improve or maintain your nursing knowledge can claim such as a tax deduction.

  1.    Medical Practicing fees:

In some cases, Medical practitioners may be required to hold a practicing certificate that requires (annual) payments for renewal, such payments can be claimed as a tax deduction.

  1.    Conferences, seminars and training courses:

Medical practitioners that attend conferences, seminars or training courses that are related to their field of expertise can claim the cost of attending these trainings.

The cost may include training fees, transportation fees, cost for telephone calls and everything in between.

  1.  Charitable donations

This right here is one of the best tax deductions available, with this deduction you get to “kill two birds with a single stone”.

This means that you get to do a good thing by donation to registered charities while saving yourself a few bucks. It’s a win-win for everybody.

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