Tax Deduction Checklist For Doctors In Australia

Tax Deduction Checklist For Doctors In Australia

When it comes to income in Australia, doctors have among of the highest paid salaries among all occupations. This means they pay more taxes as the marginal tax rate rises. If you are a doctor, you must realise that you qualify for a sizable number of deductions since you work in the medical field.

So, in order to assist you in reducing your taxable income, here is a list of the top tax deductions you can apply for:

  • Self-Education Expenses
  • Motor Vehicle Expenses
  • Medical Registration and Journal Subscription Fees
  • Tax-Deductible Uniform Expenses
  • Travel Expenses
  • Income Protection Insurance and Professional Indemnity Insurance
  • Tax-Deductible Equipment and Supplies
  • Work-Related Portion of Mobile Phone Expenses
  • Medical Professional Home Office Expenses
  1. Self-Education Expenses

You are eligible to deduct all of your educational expenses from your taxes, including course fees and textbooks. If the course directly pertains to your current work, you can only deduct educational expenses.

  1. Motor Vehicle Expenses

There are a few limited situations in which the ATO will permit you to claim these costs if you transport large equipment between home and work, such as you needed the equipment to carry out your doctor duties, but you couldn’t properly store it at your place of employment and it could only be delivered by truck.

  1. Medical Registrations and Journal Subscription Fees

Tax deductions are allowed for professional membership fee paid to medical groups like the Australian Medical Association. You can deduct the cost of your medical registration fees as well as the cost of annually renewing your practising certificate.

  1. Tax-Deductible Uniform Expenses

For doctors, the cost of purchasing, leasing, mending, or maintaining certain outfits that are specific to their line of work, such as the doctor’s uniform, is a tax-deductible expense. Other protective gear required to wear at work, such as surgical caps and lab coats may qualify for tax deductions.

  1. Travel Expenses

Medical practitioners who travel frequently for work may potentially be eligible for tax deductions.

If you travelled to a remote area, you might be able to write off the cost of your airfare, your accommodation, and your conference supplies.

  1. Income Protection Insurance and Professional Indemnity Insurance

Professional indemnity insurance and income protection insurance are two types of insurance protection that you can deduct from your taxes as a medical professional.

  1. Tax-Deductible Equipment and Supplies

Any tools or equipment that medical practitioners need for their job can be deducted from their taxes. A doctor’s stethoscope and briefcase for carrying patient records are regarded as work-related items.

  1. The Work-Related Portion of Mobile Phone Expenses

If your employer does not pay your phone cost, the ATO permits doctors to claim a tax deduction for the percentage of their phone bills linked to their professional activities.

  1. Medical Professional Home Office Expenses

If you mostly work remotely, you are eligible for deductions related to:

  • Internet use
  • Lighting
  • Heating
  • Cooling

If you need assistance, our team of tax specialists at KPG Taxation guide you through filing your tax return and maximising all of the tax deductions as a doctor.

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