Tax Deductions Checklist
for Medical Professionals
2023-24 Tax Return
Work Related Car Expenses:
When using your own car in the course of performing your job, such as:
- Attending conferences or meetings.
- Delivering or Collecting items or suppliers.
- Travel between two separate places of employment.
- Travel from your normal place of work to an alternative place of work.
- Does not include travel between home and your usual place of work.
Two available methods:
- Set rate of .85c per kilometer (up to maximum of 5,000km).
- Logbook method - completed for 12 weeks, providing a business use % of your car. This business use % is then applied against your car's running costs, depreciation, finance interest and other holding costs to determine the deductible amount.
Conference Expenses:
- Includes travel, accommodation, meals and incidental.
Memberships, Registrations & Subscriptions:
- Memberships e.g. RACP, RAGCP, RACS, ACCRM
- Registrations e.g. AHPRA
- Professional Journals
Equipment & Supplies:
- Laptop or Tablet
- Bag / Briefcase
- Stethoscope
- Any other medical supplies or tools of trade
Insurances:
- Professional Indemnity
- Income Protection
Self-Education & Professional Development:
- Courses
- Textbooks/Stationery
Home Office Costs:
- Portion of heating & lighting of home office
- Mobile Phone
- Internet
Other:
- Donations
- Accountants & Tax Agents
| Taxable income | Tax payable |
|---|---|
| 0 - $18,200 | Nil |
| $18,201 - $45,000 | 19c for each $1 over $18,200 |
| $45,001 - $120,000 | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 - $180,000 | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45c for each $1 over $180,000 |
Other medical professional financial considerations
Marginal income tax rates
HELP and other education debts
- Current threshold for 2023/24 is $51,550 – once your Repayment Income exceeds this, you will be required to begin repaying your HELP debt through your tax return.
Salary Packaging:
- Employees of Public Hospitals have an opportunity to take advantage of concessional Salary Packaging options.
- Can Salary Sacrifice up to $9,010 each year on items such as mortgage repayments or rent, and living expenses such as electricity, council rates, groceries, clothing and other household expenses.
- Can Salary Sacrifice an additional $2,650 each year on items such as holiday accommodation, venue hire or dining out at restaurants, cafes and pubs.
Note – you will need to check with your employer whether they offer these salary packaging benefits to employees.
Private Health Insurance (summarised below)
- The Medicare Levy Surcharge is an additional tax of up to 1.5% on your Taxable Income where you do not hold Private Health Insurance Hospital Cover.
- The Medicare Levy Surcharge increases incrementally starting for Singles/Families at $93,000 and $186,000 respectively.
Private Health Insurance Rebate (summarised below)
- Where you do have Private Health Insurance, your eligibility for the Private Health Insurance Rebate will be determined by your income level.
- The level of rebate is subject to a Standard Rate, and 3 Tiers which reduce eligibility to Nil.
- The Standard Rate applies to Singles/Families below $93,000 or $186,000 income levels respectively. The 3 Tier rates then apply for those above this threshold.
Superannuation
- From the 1 July 2017 all individuals can contribute to Superannuation.
- For the 2023-24 year, the general concessional contributions cap is $27,500 for all individuals regardless of age.
- By contributing to superannuation, you are saving tax on your regular income (up to 47% individual marginal rates) and paying in your Super Fund at 15%, saving you the difference in tax overall.
Note - that when your income exceeds $250,000, you will be required to pay an additional 15% tax on your superannuation contributions.
Discuss Further?
If you would like to discuss this, please get in touch.
Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
