Doctors and medical practitioners often have more complex tax obligations. It is essential that they are clear on what factors they need to report, what they need to pay, and what they can claim.

What do I need to report as a medical professional?

Doctors and medical professional are required to report all earnings received within the income year, including income derived from roles as a doctor or specialist, on their tax return. This encompasses various sources of income, such as:

• Salaries and wages, encompassing both regular payments and any additional cash or bonus disbursements.
• Allowances provided by your employer.
• Miscellaneous income, such as compensations or insurance disbursements. For instance, payments received under income protection insurance to substitute your regular earnings.

It is important to note that any reimbursements should not be considered as income.

An allowance is an amount that your employer provides, which estimates potential costs you might incur. It is essential to incorporate all the allowances that your employer has reported on your income statement or payment summary as part of your taxable income on your tax return. Allowances may be paid for things such as:

• work-related expenses, such as phone bills.
• Compensation for specific aspects of your work, such as being on call.
• Specialised duties, skills, or qualifications, such as first aid certifications.

Certain allowances might not be detailed on your income statement. To learn more about declaring these allowances as income and potentially claiming deductions, it’s important to understand allowances that are not explicitly listed on your income statement.

If you receive an allowance from your employer, it does not inherently mean you can assert a deduction. There could be some allowances missing from your income statement, which you can locate on your payslip. You are not required to declare these allowances as part of your taxable income on your tax return unless you plan to claim a deduction. Examples of this include travel allowances and overtime meal allowances.

When you utilise the allowance for work-related expenses, remember:

• It doesn’t need to be reported as income on your tax return.
• You cannot claim deductions for the expenses that the allowance is meant to cover.
• If you aren’t claiming a deduction, maintaining records of your expenditure isn’t necessary.

However, if you apply the allowance to a deductible work-related expense and wish to claim a deduction, the process involves:

• Incorporating the allowance as part of your taxable income on your tax return.
• Presenting a claim for the work-related expenses you’ve incurred in your tax return.
• Keeping accurate records of your expenses.
• Typically, the deduction amount doesn’t align directly with the allowance you’ve received.

What can I claim as a medical professional?

Work-related self-education

In order to maintain their registration, doctors and other medical professionals need to complete a certain amount of continuing professional development. The costs of these self-educational expenses are able to be claimed on tax.

Medical Registrations and Journal Subscription Fees

Medical associations charge professional membership fees that can be claimed as a tax-deductible expense. You can also claim deductions for renewing your practising certificate and your medical registration fees each year.

To stay current with the latest research and advancements in their field, medical practitioners often subscribe to journals or other publications associated with their medical specialty. These subscription fees are also considered tax-deductible expenses for doctors.

Vehicle Expenses

You are able to claim travel expenses if travelling between places of work. However, you should note you cannot claim the cost of travelling between your home and workplace.

As with all tax deduction claims, it is important to have accurate records and information. For any expense claimed, you will need to prove:

• You incurred the expense; and
• The expense is directly related to you carrying out your duties as a doctor or medical professional.