A-Z Tax Deductions for Medical Professionals in Australia: Your Ultimate Guide

Let's talk tax time. For doctors, nurses, physiotherapists, and other healthcare professionals in Australia, knowing what deductions you can claim can make a significant difference.

Here’s a simple guide breaking down ATO-approved deductions, with real-world examples. Remember, this isn’t financial advice—just a helpful overview to get you started.

This is based on the ATO's website guide for health professionals (which includes the full details of below).

Key Deduction Categories

1. Professional Memberships and Registration Fees

You can claim fees for memberships like the Australian Medical Association (AMA) or your annual practicing certificate fee (e.g., AHPRA). These are directly related to your ability to work and are fully deductible.

2. Books and Journals

Medical textbooks and journals are deductible, but here’s the catch:

• If an item costs $300 or less, you can claim the full amount.

• If it’s over $300, you’ll need to claim the decline in value over time using the ATO’s Depreciation and Capital Allowances Tool.

3. Car Expenses

Travel between work sites is deductible (e.g., from your consulting rooms to a hospital), but commuting from home to work isn’t. Use either the logbook method or the cents-per-kilometer method (currently 85 cents/km for up to 5,000 km per car annually).

4. Clothing and Laundry

If you wear protective clothing like scrubs or special footwear, you can claim the cost and laundering expenses. The ATO allows $1 per load if you wash only work clothes, or 50 cents if mixed with other items.

5. Medical Equipment

Stethoscopes, surgical tools, or specialized glasses are deductible. If they’re under $300, claim them outright. Over $300? Depreciation applies.

6. Training and Self-Education

Courses directly related to your current role, like advanced life support training, are deductible. However, courses enabling a career change (e.g., a nurse studying paramedicine) are not.

7. Home Office Expenses

If you work from home, you can claim a percentage of your home internet, phone bills, and electricity. The ATO’s Home Office Expenses Calculator can help you figure out exact amounts.

Deductions You Can’t Claim

• Childcare costs: Even if you’re working, these remain private expenses.

• Conventional clothing: Suits or smart casual wear aren’t deductible, even if worn at work.

• Fines and penalties: Parking tickets? Not claimable.

• Meals during regular work hours: Unless it’s an overtime meal or work travel, meals are considered private.

Tips

1. Keep Records: The ATO requires evidence like receipts, invoices, or logbooks. Store these digitally for easy access.

2. Use the ATO Tools: The Depreciation Tool and Home Office Calculator are invaluable for accurate claims.

3. Track Small Expenses: Laundry loads, kilometers traveled, or even protective gear costs can add up over the year.

   
   

Sorting out your deductions may seem daunting, but with the right approach, it’s manageable. By understanding what’s claimable and using ATO resources, you can ensure you’re not leaving money on the table. For more personalised advice, consider consulting a tax professional.

Watch the video for an even deeper dive: