Obviously no one likes paying tax. Medical professionals are high income earners, and can't avoid paying it, but you can minimise how much tax you have to pay.
   
Australia's tax system is very complex, but the tax laws do allow you to structure your affairs in a way that minimises the amount of tax you pay. It is important to have a strategy to pay the least amount of tax possible so you can spend your money on things that you really want to do instead of paying tax.

One way is to work on maximising the allowable tax deductions. Any expense incurred in producing assessable income is a tax deduction. That is, if the cost was paid in the practice of your profession you can make the tax deduction claim.

• Some examples of Medical Practitioners Deductions are as follows:

• Medical supplies, equipment, medicines and materials

• Professional subscriptions, accreditations, memberships and literature

• Education (as long as it relates to current employment or income)

• Travel between surgery, hospital and patients in different surgeries. Travel from home to place of work may also be deductible in some circumstances (for example where bulky equipment / tools are transported and it would be inappropriate to use public transport. Doctors should seek professional advice on this matter).

• Computer and office equipment (expenses for assets over $1,000 are normally depreciated over the life of the asset)

• Professional Indemnity Insurances

This list doesn’t cover everything; the best advice is to maintain an orderly record keeping system to allow easy review of all your expenses at tax time. You never know the tax saving you might find.

Want to know more? Talk to a business advisor today on 07 5413 9300 or drop us an email.