Tax Deductions Checklist for Medical Professionals
- 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 supplies
- 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?
- 2 available methods:
- Set rate of 66c per kilometre (up to maximum of 5,000km)
- Log book 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?
- Includes travel, accommodation, meals and incidentals
Memberships, Registrations and Subscriptions:
- Memberships e.g. RACP, RAGCP, RACS, ACCRM
- Registrations e.g. AHPRA
- Professional Journals
Equipment and Supplies:
- Laptop or Tablet
- Bag / Briefcase
- Any other medical supplies or tools of trade
- Professional Indemnity
- Income Protection
- Self-Education and Professional Development:
Home Office Costs:
- Portion of heating & lighting of home office
- Mobile Phone
- Accountants and Tax Agent
Marginal Income Tax Rates
HELP and other education debts
- Current threshold for 2016/17 is $54,869 – once your Repayment Income exceeds this, you will be required to begin repaying your HELP debt through your tax return
- 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 $2,550 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 $90,000 and $180,000 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 $90,000 or $180,000 income levels respectively. The 3 Tier rates then apply for those above this threshold.
- All employees can contribute to Superannuation via a Salary Sacrifice arrangement
- Contributions to Superannuation are taxed in your Super Fund at 15%. Currently, there is a Concessional Contribution Cap of $30,000 for people aged under 50, or $35,000 over 50
- By Salary Sacrificing, you are saving tax on your regular income (up to 49% individual marginal rates) and paying in your Super Fund at 15%, saving you the difference in tax overall
- Note that when your income exceeds $300,000, you will be required to pay an additional 15% tax on your superannuation contributions
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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.