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Tax Deductions Checklist for Medical Professionals

2016 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 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?
  • Conference Expenses:

    • 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
    • Stethoscope
    • Any other medical supplies or tools of trade
  • Insurances:

    • Professional Indemnity
    • Income Protection
    • Self-Education and Professional Development:
    • Courses
    • Textbooks/Stationery
  • Home Office Costs:

    • Portion of heating & lighting of home office
    • Mobile Phone
    • Internet
  • Other:

    • Donations
    • 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
  • 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 $2,550 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.
  • Superannuation

    • 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

If you would like to print this information please click here for PDF format

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.
 


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