As a doctor, you wouldn’t prescribe a patient with half of the medication they’d need – and the same logic should apply to your Tax Return.
Don’t bother doing half a job with your Tax Return – make sure that you deduct everything that you’re entitled to and optimise your tax refund.
If you’re a doctor or medical staff, make sure you don’t forget to claim all of your tax deductions. Don’t leave anything out of your online tax return. If you save every little bit, and deduct everything you’re entitled to, the tax return can be massive.
What qualifies your tax deduction?
There are only three main requirements that qualify as an expense for tax deductions, which is calculated against your income:
- You must have spent the money and not have been reimbursed
- It must be related to your job
- You must have a record to prove it
Remember, a record isn’t necessarily a receipt. There are tax deductions you can claim without a receipt. Continue on to find out more.
What constitutes an expense as “related” to your job you might ask?
Here’s a definition of your taxable income, and a list of doctor tax deductions.
What is your taxable income
Your taxable income is money generated from your employer or your work. Your taxable income also includes:
- PAYG summaries
- Pensions and government allowances
- Interest earned (banks etc)
- Dividends
- Rental property income
- Business income
- Other income earned (capital gains etc)
Tax Deductions for Doctors
Clothing
- Compulsory uniform (it should have the company you work for logo on it)
- Occupation Specific clothing (Scrubs or Doctor Lab Coat)
- Laundry of work-related clothing up to $150 (Only for eligible work clothing)
- Non-Slip Shoes
Other Tax Deductions
- Overtime meal expenses where you receiving an overtime meal allowance.
- Phone for work-related purposes (must have diary of work-related usage)
- The cost of AMA or other medical professional association membership fees
- Annual practising certificate fees
- Cost of buying books and journals or subscribing to a professional library
- Medical equipment
- Protective items, equipment and products – for example, gloves, aprons, masks, protective eyewear, sanitiser
- Tools and equipment: purchase and repairs
- Professional indemnity insurance
- Working from home expenses (such as online training or inductions)
- Fees from joining a union/other similar organisations
- Travel expenses, where you receive a travel allowance
Courses And Self-Education
- First aid courses
- Self-education, seminars, conferences and courses that are related to your employment.
Higher Education Contribution Scheme Higher Education Loan Program (HECS-HELP) scheme are not deductible.
Car Expenses Using Cents Per Km
- Driving between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job as a general practitioner directly to your second job as a university lecturer
- To and from alternate workplaces for the same employer on the same day – for example, travelling between your consulting rooms and a hospital to undertake surgeries
- From home directly to an alternative workplace – for example, travelling from home to a hospital that isn’t your regular work location to consult with your post-operative patients.
To claim car expenses you must own the car and maintain a logbook or diary for the travel
Maximising your Tax Return with an online tax agent
There will be more tax tips and deductions for Australian doctors that aren’t on this list. Tax deductions are not only industry specific but also change from individual to individual.
The best way to claim the most you can (which will maximise your refund) is with One Click Life.
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