January 24 2026

featured article — Guide to Tax Deductions for Doctors in Australia - Smith Coffey

Doctors Tax Deductions You Can Claim in Your Next Tax Return

One way for doctors, dentists and other medical professionals to demystify the process of lodging their tax returns is to gain a better understanding of the deductions you can claim, as well as the ones you can’t. This article will provide a summary of things to claim at tax time, as well as considerations to bear in mind when submitting your next tax deductions including considerations for personal expenses, work related expenses and other deductible expenses you might not have considered.

Introduction to Tax Deductions

As a medical professional, understanding tax deductions is essential for maximising your refund and keeping your personal finances in good shape. Medical professionals including doctors, nurses, and other healthcare workers are eligible to claim a variety of deductions, such as travel expenses for work-related trips, self education costs, home office expenses, and protective clothing required for your job. Knowing which expenses are deductible and how to claim them can make a significant difference at tax time. Strong record-keeping is really important at tax time for medical professionals. It is essential to maintain detailed records and keep all receipts related to claimed expenses, including digital copies and email receipts. It is not compulsory to keep physical receipts, as long as you have a legible digital copy.

Tax Deductible Expenses for Medical Professionals

Self-Education

Due to Continuing Professional Development (CPD) requirements, medical professionals are often required to spend a large amount of their own money on self-education expenses every year. If this self-education relates directly to your work and how you produce your income, you can claim the cost as a deduction.

Examples of these deductible expenses include relevant:

Course and exam fees
Textbooks and subscriptions to professional library resources
Seminar and conference fees
Study expenses directly related to your current position or employment activities

Other costs incurred while completing the self-education activity, such as travel or accommodation expenses for attending a conference, may also be deductible. Self-education expenses that do not have a specific connection to your current employment or that only relate to employment you hope to secure in the future cannot be claimed as a deduction.

Insurance

Any professional indemnity insurance expenses incurred in relation to your work activities are tax deductible.

You may also be wondering ‘Can I claim income protection on my tax return?’. The answer is maybe – other insurance expenses related to your work, such as income protection insurance, may be tax deductible but it’s always best to talk to a qualified medical tax accountant.

Uniforms and Protective Clothing

Expenses related to the purchase, hiring, cleaning or repair of uniforms, protective clothing, or specific garments that medical professionals are required to wear for your job can be claimed as a deduction. Examples include specialised theatre footwear, medical scrubs and lab coats. You cannot claim a tax deduction for normal business clothing, such as collared shirts or blouses, even if they are outlined in your organisation’s dress code.

Travel

Generally, you cannot deduct expenses for travel to and from work as this is considered a private expense.

However, medical professionals may claim deductions for business-related travel expenses, not limited to car expenses but also:

Travelling between different workplaces (e.g. between two hospitals or medical practices)
Travelling from home to a workplace other than your regular place of work (e.g. for irregular locum work at another clinic)
Travelling from home to your normal workplace in a situation where you are being paid to be on call and need to attend to an emergency.

To calculate your deduction, you can either maintain a logbook where you record all relevant work-related travel expenses, or you can simply claim a deduction of 85 cents for each km travelled, up to a maximum of 5,000km. Medical professionals can also claim deductions for travel, accommodation, and meal expenses related to other income-generating activities, such as travelling to remote working locations, presenting at professional conferences, or attending seminars for self-education. If the travel involves both professional and private activities, you must apportion the professional component and only claim a deduction for this amount.

Equipment, Tools and Data

If you have purchased tools or equipment that you use for work-related purposes, you can claim tax deductions. For doctors and other medical professionals, this may include the purchase of medical equipment, protective gear, office stationary and electronic devices. For example, you can claim a mobile phone purchase tax deduction if you use the device in the course of your work. Purchases of under $300 can be claimed immediately, but more expensive items will need to be depreciated over the course of their useful life.

Doctors, dentists and medical professionals could also claim deductions for the purchase, maintenance, and repair of medical equipment and tools used exclusively for work. If you have expenses that relate to maintaining a home office, such as phone and internet expenses, you also have the option to claim a fixed 67 cents per hour for each hour that you’ve worked from home. If you choose to claim on this basis, you cannot claim for the specific home office expenses as well.

Carrying on a Business

Doctors carrying on a business, such as a private medical practice, can claim the full cost of any equipment purchased for that business in the year that it was purchased. If you’ve taken out any loans for business-related purposes, the interest expense incurred on the loan can also be claimed as a tax deduction.

Other Deductions

There are a number of other tax deductions you can claim in your next tax return. Expenses related to the management of your tax affairs can be claimed as a deduction, as well as eligible donations of over $2. You can also claim annual subscriptions, union fees and memberships in professional bodies.

Another consideration is the use of tax deductible debt to drive wealth creation. This can be a great way to reduce your tax liability while also growing your investment portfolio.

Get Ahead this Financial Year with Smith Coffey

This financial year, consider partnering with a qualified tax accountant who understands the medical field and can help you identify all relevant deductions. Book a consultation with Smith Coffey today and start getting more out of your tax return.

by the FSD Team
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September 7 2025

featured article — Преимущества игры в Fenix Casino для опытных игроков

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by the Yumiko Tan
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July 26 2024

featured article — How to Structure Your Investment Portfolio

Generally speaking, medical and dental professionals are considered to have a high-risk occupation. Because of the kind of work you do, you’re subject to a wide range of regulations, and you have a high level of liability exposure. Changing economic conditions can also have a substantial impact on your operations, especially if a lot of your capital is tied up in your own practice or you specialise in providing elective treatments that depend on people having disposable income. A smart way to protect your assets from these risks is to build a robust investment portfolio, but sometimes it can be difficult to know what investment structure is best for you and where to start. At Smith Coffey, we specialise in providing expert financial planning and investment accounting services to Australian medical and dental professionals. In this article, we outline some of the more common investment structures and discuss their pros and cons.

Investing as an Individual

Creating a personal investment portfolio is the easiest way to start investing because you’re doing it in your own name and don’t need to set up a separate investment structure. The downside of this is that your assets will not protected if you’re personally sued.

Pros

It’s cost-effective and easy to set up.
You can gain access to the 50% capital gains tax discount.
Tax advantages can be achieved.

Cons

You have fewer options for distributing income.
Your negatively geared assets may turn positive and thereby increase your tax liability.
Your risk of exposure to creditors is higher because the investment is in your own name.

Establishing a Trust

A trust (usually a family trust or unit trust) is more complex to establish than a personal investment portfolio and requires a trustee to oversee its ongoing management. That being said, trusts offer greater flexibility when it comes to distributing income and reducing taxes. They also make it easier to protect your assets.

Pros

You can distribute income and capital gains in a way that minimises your tax liability.
Assets are not owned by an individual, so it is more difficult to be accessed by creditors or litigators.
You can carry forward any loss incurred by the trust and offset it against future income.

Cons

Trusts last 80 years, which can pose issues for estate planning.
If your trust is negatively geared, you’ll need to have more than one income stream to make it effective in reducing your tax liability.
They are more expensive to establish and maintain than simply investing as an individual.

Extra Superannuation Contributions

Additional super contributions are a great way to grow your investment incrementally over time. Some investors may be put off by the fact that you can’t access your super until later in life, but for others, this limitation is seen as a positive, setting you up for a comfortable retirement.

Pros

You can enjoy greater financial security by significantly increasing your retirement savings.
Your super contributions are generally taxed at 15%, which is likely lower than your own tax rate.
Your personal super contributions may be eligible for tax deductions.

Cons

The 15% concessional tax rate only applies to the first $30,000 of contributions each year.
Additional contributions above the cap can trigger additional taxes and penalties.
Super has low liquidity as an investment because it can only be accessed later in life.

Company Investments

More complex again than establishing a trust, a company investment structure is owned by shareholders and run by directors appointed by the company. While it is a more involved investment structure, it also affords even greater asset protection.

Pros

A company’s assets have stronger safeguards.
The company tax rate of 30% will likely be lower than an individual high-income earner’s.
Companies do not end, so they’re an effective way to plan your estate.

Cons

They’re more expensive to establish and run than investing as an individual or via a trust.
They do not enjoy the 50% capital gains discount.
You can only offset losses against future company income, not your own.

Final Thoughts

Choosing the right investment structure requires careful consideration of your financial circumstances and investment targets. At Smith Coffey, our team of financial planners specialise in helping medical and dental professionals achieve their financial goals. We’ll work with you to identify investment structures that align with your needs and long-term plans. Interested in a free coffee and chat to discuss your financial future with one of our expert team members? Or want to explore our accounting and tax services for medical and dental professionals? Contact us today.

by the FSD Team
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