Doctors in Australia carry unique financial responsibilities. Long years of training, professional registration, ongoing education, insurance, and practice-related costs can all add up. While your income may be higher than many other professions, your expenses are also significant — which is why identifying and claiming all available tax deductions is critical.
At Medcentric, we work exclusively with medical professionals, and we see many doctors missing out on legitimate deductions simply because they are not aware of them or because record-keeping systems are not in place. A well-structured tax strategy can put thousands of dollars back into your pocket each year.
Here is a comprehensive guide to the deductions every doctor should know.
Doctors are required to complete continuing professional development (CPD) to maintain medical registration. These costs are deductible when they directly relate to your current role.
Examples include:
Course fees for specialist training programs
Textbooks, journals, and online subscriptions
Stationery, photocopying, and printing costs
Travel to seminars, workshops, and conferences
Laptops, monitors, or desks used primarily for study
If you are a registrar training towards fellowship, these deductions can be significant. Keep in mind that the ATO requires expenses to have a direct connection to your current employment — courses that prepare you for a new job or new career path may not qualify.
Maintaining registration as a medical practitioner is essential for your career, and the associated costs are deductible. These include:
Medical Board of Australia registration fees
Professional memberships such as the AMA or specialty colleges
Subscriptions to professional medical journals
Even online memberships that support your ongoing learning or practice improvement may qualify.
Doctors often purchase equipment for day-to-day practice or ongoing study. Depending on the cost, items may be deducted immediately or depreciated over time.
Examples include:
Medical tools such as stethoscopes, otoscopes, or diagnostic kits
Computers, tablets, and accessories
Software licences for patient management or research
Furniture such as ergonomic chairs or desks for work and study
The rule of thumb: items under $300 can usually be claimed outright, while larger purchases are claimed over their effective life.
While ordinary clothing is not deductible, specialist work-related attire often is. Deductible clothing includes:
Compulsory uniforms specific to your employer
Protective items such as lab coats, safety goggles, or specialised footwear
Laundry and dry-cleaning costs for maintaining these items
Keeping a separate log of laundry loads for work clothing makes it easier to substantiate your claim.
Doctors often travel between hospitals, practices, and conferences. While normal commuting is not deductible, work-related travel is.
Claimable travel may include:
Trips between multiple workplaces in a single day
Rural or locum assignments outside your normal location
Airfares, taxis, or rideshare to professional conferences
Accommodation and meals while travelling for work-related duties
When claiming car expenses, you can use:
Cents per kilometre method (up to 5,000 km per year, per car)
Logbook method (records of business use over a 12-week period, applied to annual expenses)
With many doctors working across multiple sites, these deductions are often overlooked but can add up quickly.
Doctors frequently use their personal phone and internet for patient calls, telehealth, research, and administrative tasks. You can claim a percentage of these bills, based on work usage.
Example: If 40% of your mobile usage is work-related, and your annual bill is $1,800, you could claim $720.
The ATO allows you to establish usage with a representative four-week diary of calls, messages, and data.
With telehealth and remote reporting now a regular part of practice, home office expenses are increasingly relevant. Deductible costs can include:
Electricity and gas for heating, cooling, and lighting
Office equipment depreciation (computers, printers, furniture)
Internet and phone usage
Repairs and maintenance of your workspace
From 1 July 2022, the ATO introduced a fixed-rate method of 67 cents per hour for home-based work, which covers electricity, gas, internet, and phone. Alternatively, you can claim actual costs if you keep detailed records.
Professional indemnity insurance is compulsory for doctors and fully deductible. Other deductible policies may include:
Income protection insurance (if not held inside superannuation)
Tax audit insurance
Cover for Medicare audits or professional inquiries
Non-deductible policies include life insurance, trauma insurance, and total and permanent disability insurance.
If you engage an accountant or financial adviser to prepare or lodge your return, those fees are deductible. You can also claim:
Subscriptions to tax reference materials
Tax preparation software
Fees for advice on tax planning and structuring
For busy doctors, this deduction is straightforward yet often forgotten.
Donations of $2 or more to charities registered as deductible gift recipients (DGRs) are claimable. Ensure you retain receipts and confirm the charity’s eligibility.
Note: if you receive a benefit (e.g., a dinner ticket or raffle prize), your donation may not be deductible.
Many doctors invest in property, shares, or managed funds. Expenses associated with earning this income can be deductible, including:
Loan interest on investment property or margin loans
Negative gearing losses
Management fees and investment advice costs
Depreciation of investment property assets
Given the high-income brackets doctors fall into, correct investment structuring and deduction planning can have a major impact on your after-tax wealth.
The ATO requires you to keep records for at least five years. Without evidence, claims may be denied, leaving you exposed to penalties. Best practice includes:
Using apps to capture receipts instantly
Maintaining digital copies of invoices and bills
Keeping a dedicated business-use credit card for expenses
This approach not only simplifies tax time but also ensures you never miss out on deductions.
Doctors face higher-than-average tax obligations, complex income streams, and heavy professional costs. Generic accountants often miss the nuances of medical finances. At Medcentric, we specialise in identifying every allowable deduction and structuring your affairs so you minimise tax, stay compliant, and keep more of your hard-earned income