If you are a doctor or medical professional in Australia, we are grateful for you! We’ve put together this guide to help you get the highest tax refund you are entitled to with the least stress possible.
We’ll cover the ATO’s rules for tax deductions for doctors, insider tax tips, and tax regulations so you can lodge an accurate, timely return.
Are There Tax Deductions for Doctors I Can Claim?
Yes, if you are a doctor in Australia, you likely qualify for a wide range of deductions.
The easiest way to determine a valid deduction is by making sure it meets the ATO’s “3 golden rules”:
1) You paid for the goods or services yourself and did not receive reimbursement
2) The expense is directly related to earning your income
3) You must have valid, detailed proof of the expense
Tax Deductions for Doctors at a Glance
| CAN Claim | CAN’T Claim | |
| Vehicle | Required travel using your vehicle between work sites, such as a different hospital | Travel to and from your workplace, even if you live far away |
| Travel | Overnight travel required to complete your work duties or travel to a remote location required by your employer | Private travel expenses, such as going on holiday in a city where there happens to be a work-related conference |
| Clothing | Compulsory uniforms with a distinguishing logo that you must purchase yourself | Plain business clothes that do not have an identifying company logo, even if your company has a strict dress code |
| Self-Education and Training | Courses, safety training, or continuing education that must be completed to earn your income or advance your career | Courses related to switching careers or unrelated to earning your income |
| Communication | A portion of work-related phone or internet expenses | Phone or internet usage supplied and paid for by your employer |
| Equipment and Supplies | Supplies or equipment needed to perform your job duties and that you purchase yourself | Items that are supplied to you by your employer or that you receive reimbursement for |
Tax Deductions for Doctors: What You CAN Claim
Vehicle Expenses
Certain work-related vehicle expenses may be eligible for deductions. Car-related expenses can be claimed using the logbook method or cents per kilometre method.
Examples of possible vehicle deductions for doctors include:
- Travelling between work sites with your personal vehicle
- Driving to a different workplace under the same company
- Driving from one hospital to another
- Using your personal vehicle to attend client visits or meetings
Travel Expenses
If you need to travel for education, business, or work-related duties, you may be eligible to claim travel expenses. Travel must directly relate to generating income and completing your duties.
Expenses such as airfare or accommodation may be deductible if you are required to stay overnight due to travel.
Our clients often mention that travel deductions are one of the more confusing aspects of tax returns. If you are having trouble navigating what you can and can’t claim, we’d be happy to talk with you.
For more details on travel tax deductions for doctors, see our printable tax checklist here: Doctor and Other Medical Professionals Tax Checklist.
Clothing Expenses
Compulsory uniforms that are not supplied to you are deductible. They must be required to wear under your workplace policy and display a logo or identifying emblem.
Necessary protective clothing that is not supplied by your employer is also deductible. Examples of protective clothing that may be an allowable deduction include:
- Medical scrubs
- Surgical caps
- Lab coats
- Surgical masks
- Protective glasses
- Non-slip footwear
Remember, you must purchase these items with your own money, save the receipt, and not receive any reimbursement to qualify for a deduction. A portion of laundry and dry cleaning expenses may also be claimed for uniforms.
Self-Education Expenses, Accreditations, or Safety Courses
If you enroll in a conference, workshop, or seminar that is required for your career, these fees may be deductible. Self-education courses or training must be directly related to maintaining your current position or obtaining a promotion.
Communication
As a doctor or medical professional, you likely use a computer and phone extensively. If you incur work-related expenses from using your personal phone or computer, you may be able to claim a deduction.
To qualify for a deduction, the ATO requires a four-week sample of phone or internet expenses each financial year. The ATO will use this record to calculate the portion of internet and phone services you are eligible to claim.
If your employer supplies and pays for the phone, it is not an eligible deduction.
Equipment and Supplies
If you purchase equipment or supplies needed to perform your work duties, you may be eligible for a deduction. You must save proof of the purchase, such as a receipt, and not receive reimbursement.
Examples include:
- Medical supplies (microscopes, stethoscopes, etc.)
- Work bags, briefcases, laptop bags
- Protective gear
- Safety equipment
Other Tax Deductions for Doctors
- If you hire a tax agent to lodge your tax return, the tax agent fees are deductible
- Cost to renew practising certificates or medical registration fees
- Work-related medical journal subscriptions
- Fees from annual subscriptions, medical journals, and memberships in professional bodies related to your occupation, such as the Australian Health Practitioner Regulation Agency (AHPRA) registration, membership with the Australian Medical Association or AMA and the Royal Australian College of General Practitioners or RACGP)
- Specialist medical college membership fees
This is not an extensive list of tax deductions for doctors. To ensure you are claiming every deduction you are eligible for, we recommend working with a tax professional.
The ATO also has excellent resources regarding the rules for tax deductions for doctors here: Doctor, specialist or other medical professionals – income and work-related deductions | Australian Taxation Office.
Tax Deductions for Doctors and Medical Professionals: What You CAN’T Claim
Here are expenses you CAN’T claim:
- Clothing, equipment, or items that are supplied to you
- Anything you receive reimbursement for
- Driver’s license fees
- Traveling to and from work
- Conventional non-uniform, plain business clothing
- Removal or relocation expenses
- Passport fees
- Childcare fees
- Penalties, traffic fines, or parking tickets you get while driving for work
- Donations to non-registered charities
- Personal hygiene, grooming products, gym memberships, etc.
- Meals, beverages, or snacks purchased during your shift
- Life insurance premiums, medical treatments, or prescription glasses
- Costs associated with work parties or social events
- Employer contributions to your superannuation fund
Wondering about what you can and can’t claim for a different career? Browse our range of industry-specific tax checklists here: Tax Return Checklists – Industry-Specific Guides to Tax.
Have a tax checklist you’d like to see for your career? Let us know!
Things to Consider for Doctors and Medical Specialists When Completing a Tax Return
Here are additional factors to keep in mind when lodging a tax return as a doctor or medical professional:
- Keep any tax-related documents, receipts for work-related purchases, and detailed records to make tax time smoother
- Maintain a valid logbook if you plan to claim deductions for work-related vehicle use with the logbook method
- Make sure you declare all wages, commissions, salary, and income
- Avoid inflating deductions
- If you aren’t sure if a deduction can be claimed, do not assume you can — always double check with the ATO if you are unsure
- Do not claim expenses for items that are supplied to you or that you receive reimbursement for
- Use the myDeductions tool from the Australian Taxation Office
Tax Tips for Doctors and Medical Specialists
Here are 4 insider tax tips for doctors and medical specialists:
#1. Register with a licensed tax professional
#2. Keep valid proof and accurate records of work-related expenses
#3. Do not claim any expenses you have been reimbursed for
#4. Correct mistakes right away and notify the ATO
Doctor Tax Tip #1. Register with a Tax Professional
Doctors are eligible for a wide range of tax deductions, which can be tough to navigate. We’d have many overwhelmed medical professionals come to us during the tax season, unsure of how to proceed. We’re happy to help take that stress away!
We understand all the ins and outs of the ATO’s regulations for tax deductions for doctors and medical professionals. In just a few steps, we can lodge an accurate, compliant return on your behalf.
Doctor Tax Tip #2. Keep Records of All Work-Related Expenses and Purchases
A work-related expense without proof is not a valid claim. For the ATO to accept a deduction, you must be able to prove your purchase with a credit card statement, receipt, or invoice.
We recommend keeping a physical or digital file where you can save all receipts and invoices related to work purchases. When it comes to tax time, you won’t need to go on a stressful last-minute search for records.
Make sure the statement, invoice, or receipt details the name of the supplier, date of payment, nature of goods or services, amount paid, and date of the document.
Doctor Tax Tip #3. Do Not Claim Expenses You Receive Reimbursement For
You’ll notice we mention this rule several times throughout this guide. This is one of the most important takeaways of lodging a compliant return: Never claim an expense you get reimbursed for.
If you try to claim an expense that your employer reimbursed you for, you risk a poor standing with the ATO, penalties, and fines.
Doctor Tax Tip #4. Identify and Correct Mistakes Right Away
A misspelling.
An error in your address or phone number.
An expense you forgot to provide proof for.
Any of these mistakes can result in fines and penalties from the Australian Taxation Office. If you notice a mistake, contact the ATO right away. This gives you the best chance of resolving the situation smoothly and minimising penalties and fees. A tax professional can also advocate on your behalf in the event of a mistake.
Skip the Stress with Our Licensed Tax Professionals
Working in the medical field is busy and stressful enough. Our tax specialists are here to take the burden of tax season off your shoulders. We’ve helped hundreds of medical professionals maximise their tax returns and lodge a return online in just a few quick steps.
We guarantee a 100% accurate, compliant return that gets you the maximum refund you qualify for.
Register with our tax specialists to get your instant online tax refund. Email our licensed tax professionals at support@taxreturn.com.au, phone us on 0499 829 829 (0499 TAX TAX), or fill out our online contact form.
